Condo Q&A

Does nondisclosure breach the condo board's fiduciary duty?

Written by CondoAssociation.com | Tue, Jul 25, 2023 @ 03:29 PM

This question is submitted by Dave G. out of Illinois

Does a condo board breach its fiduciary duty when it obtains a reserve study, then does not disclose that a reserve study was done to the members?
 
Second, as a result of the nondisclosure, the Seller of the condo did not know about the reserve study and sold their condo to a Buyer.
 
Could the Buyer sue the condo board where the Seller did not know about the Reserve Study and disclosure of the Reserve Study would have shown grossly understated reserves?

 



 

Thoughts?