Full question:
Is it legal for a bank selling a foreclosed property to have an addendum that states the buyer is responsible for any monies in assesments, such as association fees on a townhome in arrears?
- Category: Real Property
- Subcategory: Foreclosure
- Date:
- State: Minnesota
Answer:
A warranty deed guarantees that the seller (grantor) is transferring a clear title to the property. It includes assurances that the grantor owns the property and has the right to sell it, typically stating that the property is free from liens or encumbrances. In contrast, a trustee's deed does not provide these guarantees and conveys the property 'as is.' This means it may come with existing liens or other issues.
When buying a foreclosed property, buyers should conduct their own inspections and due diligence. This includes checking for any senior liens, physical defects, or the need to evict occupants. If the bank’s addendum states that the buyer is responsible for any outstanding association fees, this is generally permissible, as the buyer accepts the property with any existing obligations.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.