Seller did not disclose tenant was behind on rent

[Eric Barrios]

Hello BP Family,

I am under contract in a triplex in California. The seller failed to disclose one of tenants was behind on rent, he said that "he thought by the time we closed, they would be caught up". The tenant did not end up catching up on rent so I was told they were behind about 3 weeks into escrow. I told his realtor (his realtor is representing both of us, i know big mistake) he failed to disclose that within the time contingency written on contract but hes saying "that would be hard to prove".

I really don't mind walking away, but I've already paid for inspection and appraisal plus travel costs, time taken off work, etc. Does anyone have any insight as to what my options are? I would assume legal actions, but i know all Purchase agreements say we should enter arbitration first. Any input is greatly appreciated!

[Mike S.]

@Eric Barrios

Always get an estoppel signed by the prior owner an all tenants regarding lease agreement specifics, security deposit held and amount paid or outstanding.

There are countless stories of new owner finding out from tenants after the fact a different stories than what was told by the prior owner before the sale.