Disclosing wrong maintenance
Started by KAWI
over 9 years ago
Posts: 2
Member since: Mar 2014
Discussion about
We are about to close on a coop purchase. When reviewing the final figures, we are charged a higher monthly maintenance fee. This was brought to our attention when receiving the appraisal report. When we questioned the listing agent (we did not have any), he said those were the numbers provided by the seller. Now, he says we signed the contract and nothing can be done. Those monthly maintenance fees were in place since Jan 2016; the property listed in March. This is a 10% error. After discussing with our attorney, the seller is willing to pay half a year of error, but the realtor refuses to participate in any compensation. Any advice?
this makes no sense, your attorney's responsible for due diligence, are you saying that on the contract the wrong maintenance figures are listed? That's quite an error. I would definitely contact an attorney with options. How would the realtor know that the figures are wrong if the seller's attorney had the wrong information as well?
Realtor should have verified numbers before listing the apartment. That said, your attorney should have caught the error.
When I was selling an apartment, the Board notified all the owners that there would be a maintenance increase sometime during the year without providing any details. In the description of the apartment, the broker included the undetermined increase to avoid troubles. We didn't have the new maintenance at the time we went to contract. I think the buyer's lawyer did a rough estimate based on the previous increases.
Did the maintenance increase 10% year over year? (from December 2015 to the new figure that went into effect January 2016)? If so you might have a bigger question about why, as that's a relatively big jump. A concern about the underlying reason would be a bigger worry. Don't get hung up on who exactly is contributing a giveback (broker vs seller etc.) to help you adjust for the error over an introductory period.
KAWI, Your attorney is supposed to confirm the maintenance with the coop managing agent before you sign. Contracts list the maintenance. In fact, most contracts have a language which says that the buyer has verified the maintenance and seller is not responsible.
Selling broker has acted unethically but in most cases they will just list what the seller told them the maintenance was.
10%, what are we talking, a couple hundred a month?
Maintenance could have stayed where it was and gone up later then in July.
Doesn't seem material or extraordinary in amount or circumstance.
If it's a large percentage increase it may be a sign that they have not been maintaining the building or that they've had substantial legal bills. I bypassed one building because the maintenance had doubled within 5 years as the exterior of the building, the terraces, and the heating system needed extensive work due to years of neglect. Remember that maintenance increases are inevitable due to the union contacts of the employees. That's the bulk of the building's budget.