Maintenance call during property closing

[Tim Johnson]

Hello BP!

Last week I purchased my first multi-family property, an 18 unit apartment building in Minnesota.  At closing, the previous owner got a call that the heat was out.  What I thought was going to be a simple fix has turned into a $1200 repair bill.  I'm quite sure that the previous owner did not know there was an issue.

The problem happened before closing, but the call did not come in until just after closing.  Who is responsible for the repairs?  I asked the previous owner to split the cost with me, he refused saying he had already given too many concessions on sell price, and since the call came in after closing it was my responsibility.

I was hoping he would split the cost.  Where is the line of old owner responsibility and new owner responsibility?  As part of the purchase agreement the previous owner will get a future payment from me.  If he were legally responsible for the repair I could short-pay this future payment.

Thanks in advance!  I know yall are not lawyers, I'm interested in your opinions.

[Tim Campbell]

Just my opinion...not legal advice.  Unless you can prove that the owner intentionally hid the issue or you negotiated a warranty period, it sounds like it's your cost.  You may be able to take legal action but I think you'll spend more on proving your case.  Was an inspection done? Was a disclosure given? Was there a warranty bought?  If not, your cost.  $1200 repair bill spread over 18 units may not be worth fighting.  Hopefully it's cashflowing off the bat and you factored in maintenance cost into year 1 expenses.