I closed on a 6plex on 1/31 after a 5 month lengthy closing. We are in the dead of winter here in buffalo ny. Long story short, after owing the property for 5 days I started getting calls from tenants saying their heat wasn't working. I went up there and there were error codes that I was able to clear and reset the boiler and everything was fine until the next night. I did this for the next two nights until yesterday I couldn't get the boiler to power back up. I called a tech and they told me it was time for new boiler. (this boiler was from 2008) Spent 8,000 in the first week of owner ship. I had a home inspection. I was very apologetic about the whole thing to my tenants (4 of the apartments run on the same boiler) they were quick to tell me that this has been happening long before you took over. My question is is the previous owner liable at all?
@Anthony Sinicki - doubtful the previous homeowner is liable, especially if it passed the inspection. It's fairly common in the southeast to obtain a home warranty at closing (seller pays for it, approx. $500 for a year). These type of home warranties cover the large appliances like this. I don't see how the previous owner would be liable. $8k in the first week. OUCH!
It depends. In my state, the Seller is not required to disclose everything. It is the Buyer's responsibility to inspect and know what they are purchasing. That said, inspections don't show you everything and sometimes things happen to break right after purchase. It's important for investors to have additional funds available on the day of purchase because you never know what's going to happen.
I still can't believe a furnace less than ten years old had to be completely replaced.
What did the inspector say about the furnace in the report?
Also, did you attend the home inspection in person?
I understand it’s to late now but, I always attend, meet the tenants and ask them if there have been any issues. We discovered a leak in the sewar line by speaking to a tenant at our last inspection.
Did the previous owner sign a disclosure document?
You need to speak to a lawyer, the previous owner may be liable if you can prove they knew about an issue before hand and did not disclose it.
Then the problem is how much time, effort and money are you going to spend trying to recoup your 8K.
Sorry about the big ticket item, I have had similar things happen to me as well. Always sucks.
It's too late now, @Anthony Sinicki , but a whole new boiler system after only 10 years? I would have gotten another estimate. I'm sure it was just a part that could have been replaced.
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