[WSBAPT] Misrepresentation in real estate sale

[Mike Winslow]

What does the PSA say? Are there reps and warranties by the seller about the rent rolls and status of tenants? Is there a breach of warranty regarding the status of tenants’ rents, leases, etc? Assume you are not referring to the Form 17 in reference to your “standard form agreement with seller representations”. That would have no effect on this issue.
 
Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com
 
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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Jennifer Sohn
Sent: Wednesday, June 29, 2016 11:06 AM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] Misrepresentation in real estate sale
 
Hi, I am not sure if this is the right forum to post this, but I frequently come across real estate dispute issues and here is one. One of my clients sold an apartment building recently, with an ongoing eviction proceeding for 1 tenant (which was disclosed to the buyer). The purchase and sale agreement was a standard form agreement with seller representations that all material facts about the property has been disclosed (with ongoing duty to disclose until closing). But, the client settled with the tenant and agreed to re-instate her (which was not disclosed to the buyer). After closing, the buyer had to go through an eviction proceeding to kick out the tenant because she wasn't paying rent. The tenant paid 1 month's rent and then stopped paying. So, the buyer is claiming all attorneys' fees, rents that would have been due plus late fees, and additional billable time for management company, etc. 
 
Just as a matter of discussion, is the buyer always entitled these costs post-closing in this type of situation? For example, if the tenant stopped paying 1 year after closing versus just 2 months after closing, I would think that would make a difference.
 
Any thoughts would be appreciated.
 
Thanks.

 
-- 
Best regards,
 
Jennifer Y. Sohn
Attorney at Law
(Licensed in CA and WA)
Sohn Law PLLC
10900 NE 4th Street, Suite 1850
Bellevue, WA 98004
Tel: 425.522.3861
Fax: 425.732.9748 
Email:  <mailto:jennifer at sohn-law.com> jennifer at sohn-law.com
 <http://www.sohn-law.com/> http://www.sohn-law.com
 
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