Discosure question - Posted by Ben Clabaugh
Posted by Ben Clabaugh on March 13, 2000 at 11:40:11:
I own the option to buy a 3-unit rental property in Florida. Cash flow is great, but a recent dry spell caused settling due to the presence of expansive clays under the buildings. The bottom unit has a new crack in the floor, old cracks in the walls have come back, and the front door needs re-alignment. Rents and property values have increased so much since I bought the option, I plan on cashing in and finding a buyer to either assign the contract to or buy at a simultaneous close. Assuming the dry spell ends, the settling stops, and I fix the cracks and door, am I required to disclose the geology beneath my bldg. to potential buyers? Thanks in advance for any help or suggestions.