Seller May be Bound to Agreement to Repair Property not Owned by Seller
FACTS:
Buyer and seller are under contract for the purchase and sale of a condominium unit. The exterior walls of the unit are owned and maintained by the condominium association, not the seller. Buyer submits a BINSR requesting repairs to deteriorating stucco on the exterior walls of the unit. The seller agrees to make the repairs, signs, and returns the BINSR to buyer. The seller speaks to the condominium association board and is told that the association will be repairing the stucco next year but that it will not be done during escrow. The condominium association also refuses to allow the seller to repair the walls of seller’s unit immediately at seller’s own cost.
ISSUE:
What is the buyer’s recourse?
ANSWER:
See discussion.
DISCUSSION:
The buyer’s request for repairs that are not located on the “premises,” i.e., not part of the property being purchased by the buyer, was arguably improper. However, because the seller agreed to make the repairs, the seller became bound by that agreement. The fact that the seller has no legal authority to make the repairs or force the association to make the repairs within the escrow period does not relieve the seller of this responsibility. If the repairs remain incomplete within three days of close of escrow, the buyer may issue a cure notice and, if the repairs remain incomplete once the cure notice expires, the buyer may cancel the contract and potentially seek damages for breach of contract.