Is it legal to sell property and not disclose there were unresolved property damage claims?
The answer depends on the terms of the sales contract and the
nature of the claims. Generally, the contract of sale will determine
whether the buyer assumes the claims pending on the property or not. In
the event of a transfer of the lessor's interest in the leased premises
during the term of a lease, the landlord must also transfer to the new
owner the sum deposited as security for performance of the lease and the
former landlord is then relieved of further liability with respect to
the security deposit. The new landlord is then responsible for the
return of the lessee's deposit at the termination of the lease.