What Are Your Disclosure Obligations When Selling an HOA Property in New Jersey?
Updated: Aug 28, 2020
There are numerous reasons why you might be considering selling your HOA property in New Jersey. Maybe the bills are becoming too much for you, or maybe you simply do not want to live in the area anymore.
Regardless of your reasoning, it’s crucial that you follow the law as you attempt to sell your property to potential buyers. Are you versed in New Jersey's rules of disclosure? What are your legal obligations when it comes to revealing specific aspects about your property to buyers, anyway? Get the answers below.
What You Need to Know About NJ’s Rules of Disclosure
While many transactions are considered as-is sales, homes are usually not one of them. In nearly every circumstance, potential homeowners want to know exactly what they’re buying. An intentional failure to inform the homeowner about issues you’re aware of (like termites or water damage) could come back to bite the seller.
If you’re planning on selling your HOA property, then are you obligated to inform the buyer about issues you’re aware of? Or, is it the buyer’s legal burden to do their due diligence and discover the issues prior to buying a home?
In New Jersey, the law generally places this burden on the buyer themselves. For this reason, it’s typical for buyers to request home inspections, repair information, and any other pertinent information prior to closing the sale. While the majority of the burden falls on the buyer, are you as the seller obligated to disclose certain facts if the buyer asks about them? Are you legally obligated to provide details that may prevent a sale?
Weintraub v. Krobatsch: An Updated Interpretation of a "Buyer’s Beware" Market
This case made it all the way to New Jersey’s Supreme Court when a buyer purchased a home that had a clear cockroach infestation in it. The seller failed to disclose the information prior to the sale, and the buyer argued the seller’s failure to disclose was an example of fraud. The New Jersey Supreme Court held that the buyer may be able to cancel a purchase where the court finds "deliberate concealment," or "nondisclosure of the latent infestation not observable by the purchasers on their inspection." Under this new precedent, if a seller fails to disclose a material fact, then the purchaser may be entitled to cancel the contract or sue the seller for damages after the sale is complete.
The Real Estate team at Posternock Apell, PC is ready to help you out. Please give us a call at (856) 861-3474 or fill out our convenient online contact form. We have an office at 400 North Church St., Suite 250 Moorestown, NJ 08057.
The articles on this blog are for informative purposes only, are not intended as legal advice, nor form an attorney-client relationship with the reader. If you seek legal advice, please contact our law firm directly.