Help! Shocked to find water running all over new purchase

[Dylan Detert]

Recently we purchased a vacant property that was part of a package of properties.  The properties were purchased from a seller that was forced to sell the properties as part of a city crackdown on slumlords, and the city had assigned a property management company to manage the properties back in May.  We closed on December 28th, and after going round and around multiple times, I was finally able to get keys to the properties today, January 8th. The property management company said they could not give me keys because their lawyers could not confirm the closing, even though everything was completed on the 28th.

Today after receiving the keys I went to the properties and talked to the tenants in the ones where there were tenants, and when I got to the vacant one, I could hear water running inside.  When I opened the door I was astounded to find both the bathroom sink and kitchen sink running, with both drains clogged, and water pouring onto the floors in both areas and going through the floor into the basement.  In addition, there is now mold covering all of the walls and obviously huge repair costs.

What are my options? Do I go after the property management company?  I am still in shock and looking for any help that you can provide. Thanks! 

[Joe Splitrock]

Originally posted by @Dylan Detert:

@Joe Splitrock During our last walkthrough (approximately 2 weeks before closing) I personally observed the water being turned off at the meter.  Unfortunately, even with the meter being turned all the way off, water was still getting through.  

I guess I wasn't sure of the legality of busting down the door, as well as the fact that it might look very suspicious in this particular area.  If you guys are saying that the fact that them not giving me keys has no legal grounds though, I might just have to eat it.

There is an argument to be made that they were responsible up until they passed over the keys. If they were contracted to care for the property, then they may have responsibility. They could also be argued that you are responsible for taking the property "as is". Or they could be argue you were responsible after closing. It is really your decision if it is worth paying an attorney to pursue this. That decision comes down to damage amount, attorney cost and likelihood of winning. 

I don't see any harm in requesting the the PM to cover the cost. All they can say is no or maybe they will just pass if off to their insurance provider. Or maybe they will try to negotiate. I would focus on the fact that they refused to give you access to the property and they didn't check on the property while they were holding it hostage. If they truly believed you didn't own the property, then they should have been checking on it.