How litigation may impact the sale of a Beacon Hill condo? As the owner of a Beacon Hill condo, you have likely heard of downtown Boston buildings being in litigation or perhaps even your own has been involved in one of these common lawsuits, but many don’t know how litigation may affect the potential sale of their Beacon Hill home or the purchase of a new Boston midtown high rise condo
Constriction Defects
Construction defect litigation is the most common type you will experience as a Beacon Hill condo owner perhaps involving poor craftsmanship, faulty materials, or other functional deficiencies. The primary concern is the financing process as a lender tries to estimate a homeowner’s future expenses. In regards to a single family Beacon Hill home, a mortgage, taxes, and a handful of other expenses are typical, but a condo owner will additionally incur condo fees used to maintain the complex and provide services. Condo fees may also be used for legal fees and these may be raised an unpredictable amount over an extended period of time to cover the expenses of litigation. Most lenders will resist issuing a loan until a settlement is reached unless it only involves a minor issue not affecting safety or livability. If the condo association loses, everyone in the building may be held responsible for the legal fees requiring a special assessment passed on to the owners to pay – obviously not an expense a lender will want to take on.
Sellers Issues
As a seller, your buyer pool may decrease to only those able to pay cash or meet the lender’s higher down payment requirements. In some cases, a seller will reduce the price enough to remain competitive in the market.
Buyer Issues
As a buyer, you may likely be limited in your financing options or be required to use a specific lender. FHA and VA loans will not be issued during the litigation period. A buyer may also be required to provide a higher down payment offering less risk to the lender.
Bottom Line
For more information regarding current litigation cases affecting condo developments in the Downtown Boston real estate market, please give us a call and we will be delighted to assist.
Boston Beacon Hill Condos for Sale
Sorry we are experiencing system issues. Please try again.
Click here to view The Most Recent Beacon Hill Condo Sales Data Reports
Today’s newest Boston condos for sale – Updated in real time
Sorry we are experiencing system issues. Please try again.
