Asked in @US
May 11, 2010
, 0 answers
Can I Be Sued for Negligence of a Former Landlord if I Buy a Rental Property?
I'm buying a bank owned property duplex in Calif. One unit is currently occupied and listing agent (agent for the bank) has been collecting rent on behalf of the bank for last two months. I'm currently I escrow and still within my contingency period. During my inspection contingency period, a licensed HVAC company noted on their billing invoice 'positive indication of cracked heat exchangers which will allow carbon monoxide poisoning into dwellings'. The HVAC guy said by law they have to shutoff the pilot for health and safety reasons and as far as I know, that is all that has been communicated to the tenant. Tenant has been very irate that he doesn't have heat. I don't know how the listing agent has been handling and appeasing the tenant's concerns. HVAC guy had no option but to shutoff and they were only called for evaluation of the system knowing full well that I don't own the property and could not authorize replacement furnaces. HVAC company is a large reputable company in the area and I think they are telling the truth. Also, we have no knowledge if tenant or his wife has had any sickness that might be due to carbon monoxide emissions over the years they have been in the property. I have asked the bank to replace the units before I close escrow and take title. The bank is offering some credit for furnace replacements but not wanting to replace them themselves. The bank always says in its communications that buyer is buying the property as-is. Question: Do I assume (take on) any legal liability from any future lawsuit from the tenant for any possible illnesses they may have had or incurred during the time that either the bank owned the property or the prior foreclosed owner had owned the property before the bank took over? In other words does liability attach to me, the new owner, because I'm buying the property as-is, even though the defective/poorly maintained heating units were owned and controlled by other parties for months and maybe years before I saw for sale listing a few weeks back? (If I do complete the purchase, I will immediately replace the defective furnaces, but the tenant will be without functioning heaters during that time of 1-2 weeks to schedule replacements. It is not too cold right now here in California).
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