What remedies are available when seller inaccurately disclosed homeowners fees?
Seller’s Disclosure is the disclosure made by seller to the buyer, which details all physical problems and defects of the subject matter of sale that the seller is aware of. The seller will be held liable if s/he fails to disclose any problems within his/her knowledge. However, there is no liability if the seller has no knowledge of the inherent defect of the product. Seller’s disclosure is the disclosure of seller’s knowledge of the condition of the property as of the date signed by seller. A seller’s disclosure statement is not a substitute for any inspections or warranties the buyer may wish to obtain.
Typically, liability for failure to accurately report information on the disclosure would be created for a material defect or problem not disclosed. If the seller did not have knowledge of the problem or inaccuracy, there will be no liability.
If the transaction has already been completed, the remedies available may be to bring a lawsuit against the sellers for fraudulent disclosure. Damages would have to be proven and may include the difference in the amount of fee disclosed to the amount actually owed, over the period of time you will own the property. A defense to this claim may be a mistake made by the sellers.
A court would have to decide if fraud or negligent reporting occured and then if so, set the amount of damages awarded.