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Lease option: Seller did not disclose construction defect lawsuit!

By
Real Estate Agent with Windermere Prestige Properties S.74766

Me and my husband entered into a lease option agreement in Aug 05' where we were provided with year old HOA docs a month after signing, no SRPD, no RE disclosure guide, and etc.  We found out a few months into it that the condos assc was in the middle of a construction defect lawsuit that we had never been informed of prior to handing over our $5000 for the lease option.  I had specifically asked the leasing agent if there was a lawsuit and he had told me NO prior to signing (I was not yet a Real Estate agent).  Nearing the end of our lease option when we had exhausted our financing options, we asked the owners for the deposit back in Jan 08' since they had not been honest and the contract was voidable- they infatically said NO and that the contract stated that "under no circumstances will the deposit be returned".  I said that obviously that does not include situations where the parties knowingly lie and try to defraud people in tough financial circumstances and makes the contract voidable.  People who do lease options to begin with are not in a current position to buy traditionally but able in the future.  With this undisclosed defect, we could no longer qualify for FHA or any loan with less than 20% down.  It is unreasonable to think that this information was materially important to us ever signing to begin with.  We are in the midst of taking them to small claims court in NV.  Any advice on how to win our case or any case law to reference?

 

Anonymous
Sandra Berks

I had my earnest money returned. Here check out www.civiltree.com they might be able to help

Jan 22, 2009 06:47 PM
#1