Real Estate

Buyer asking seller to pay 50k

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  • Jan 13th, 2020 8:17 am
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[OP]
Sr. Member
Apr 13, 2017
744 posts
264 upvotes

Buyer asking seller to pay 50k

My friend sold a condo townhouse last year. The building had few special assessments and my friend had to pay several thousand $ over few years. The seller was presented status certificate before the sale.

The buyer just realized that they’ll have to pay for another special assessment and now claiming that this information was not clearly documented in the status certificate (or rather claiming certificate was not up to date).

Buyer (through his lawyer) is now demanding my friend to pay 50k (it’s just a letter and not actually suing) My friend is already in talks with his lawyer and condo corporation.

Providing latest status certificate is the responsibility of the condo management company - any way my friend recoup it from them ? Or is it buyers lawyers fault for not clearly reading the status certificate / last update date?
9 replies
Deal Addict
User avatar
Aug 7, 2007
3358 posts
1452 upvotes
GTA
If the seller knew of an upcoming special assessment and failed to notify the buyer, that might be grounds for something. With that said, it’s going to be very difficult to find out if the sellers knew without proof.

This is why we have RE lawyers in this situation
[OP]
Sr. Member
Apr 13, 2017
744 posts
264 upvotes
Certificate presented to the seller by the condo mgmt has “latest” mentioned as of that date.
Sr. Member
Jan 1, 2017
873 posts
679 upvotes
The question is did the seller know about the special assessment ahead of the sale or not. Also did the status certificate disclose it or not?
[OP]
Sr. Member
Apr 13, 2017
744 posts
264 upvotes
ProductGuy wrote: The question is did the seller know about the special assessment ahead of the sale or not. Also did the status certificate disclose it or not?
He didn’t know. Suppose he did, how is he supposed to disclose this in the listing ? Isn’t it buyer / buyers lawyers responsibility to go through the status certificate? Seller got the status certificate directly from the property manager.
Deal Fanatic
Jul 3, 2011
5501 posts
2653 upvotes
Thornhill
headleygrange wrote: The buyer just realized that they’ll have to pay for another special assessment and now claiming that this information was not clearly documented in the status certificate (or rather claiming certificate was not up to date).

Providing latest status certificate is the responsibility of the condo management company - any way my friend recoup it from them ? Or is it buyers lawyers fault for not clearly reading the status certificate / last update date?

Certificate presented to the seller by the condo mgmt has “latest” mentioned as of that date.
Which is it, that the status certificate included mention of the latest assessments or that it didn't?

As long as it's in the status certificate and you received a copy, the seller has notified you accordingly, even if they didn't read the cert to know about it.
headleygrange wrote: He didn’t know. Suppose he did, how is he supposed to disclose this in the listing ? Isn’t it buyer / buyers lawyers responsibility to go through the status certificate? Seller got the status certificate directly from the property manager.
Deal Expert
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Aug 2, 2010
15194 posts
4833 upvotes
Here 'n There
headleygrange wrote: He didn’t know. Suppose he did, how is he supposed to disclose this in the listing ? Isn’t it buyer / buyers lawyers responsibility to go through the status certificate? Seller got the status certificate directly from the property manager.
'Suppose he did' means he did, lol. I also love the way RFD members always pretend they are asking 'for a friend' when it's really them that are asking...
Deal Fanatic
Feb 29, 2008
9967 posts
5291 upvotes
How is this on the seller? It's the buyer's responsibility to review the status certificate (it's a condition that you would put with your offer). If there's a new special assessment that came after the status certificate was reviewed, how is that the seller's fault?

Buyer is just salty and I don't blame em but a lot of condos have special assessments.
[OP]
Sr. Member
Apr 13, 2017
744 posts
264 upvotes
eonibm wrote: 'Suppose he did' means he did, lol. I also love the way RFD members always pretend they are asking 'for a friend' when it's really them that are asking...
Trust me. It’s not for myself. Lol.

And my friend didn’t know about future special assessments.

Also, I’m asking this in RFD just to understand others perspective in matters like this. I only have freehold investments and was considering buying a condo in downtown in future. But rising condo maintenance, special assessments etc are pushing me away.
Deal Fanatic
Feb 29, 2008
9967 posts
5291 upvotes
You buy a condo there will always be a chance of special assessments. Precisely why I never liked to buy older condos. That’s not to say newer condos don’t have them either.

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