Seller Failed to Disclose

[Christopher Munn]

Just recently took over a building. 22 units bought from a local owner. The inspections were done in November but because of the holidays, the financing period was extended due to the banks needing extra time to close.

So after taking over, 2 tenants told me that their furnace is out and the previous owner was notified. It's clear he was just looking towards the sale and did nothing so it would become my responsibility. These are pretty costly items.

I specifically asked the owner (via the broker) if the maintenance requests were completed up to date, which was confirmed. 

The purchase agreement also gives me 9 months of indemnification. 

So my question is, what would the multifamily owners here, do in this situation? Create a running list and present to prior seller later, alert prior seller now, run it through legal, do nothing, etc?

Any advice would help.

[Jerry W.]

@Christopher Munn, I hate to state the obvious, but read the contract carefully.  You may be obligated to give notice of items you are repairing before you spend the money.  In any event the repair must be done, you have covered it.  next have an attorney read the contract and give you his opinion about charging the seller for the repairs.  Laws differ from state to state and a local attorney should know the local laws.  Finally without reading the actual contract the advice from us is only a guess.  The actual terms will control.