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Our condo has a few open violations. One of the units is selling (the unit itself has no violations) and the purchasers attorney requested that we provide a letter of indemnification for these open violations and that they will be fixed soon. Is the condo required to indemnify the new buyer? Doesn't this put the building in a greater risk should something occur? Thank you.
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I actually wrote a blog post on this a few days ago and just saw this question here now, if you want to check it out:
http://ebmg.com/2015/10/indemnification-and-hold-harmless-letters-why-banks-should-be-named-and-not-the-shareholder-unit-owner/
Can a condo board demand signed letters of indemnity from a unit owners and the person they hire to do work on their unit
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That's an interesting question and one that you should be consulting with your legal on.
Personally, I don't believe you are required to indemnify the purchaser. In other words if you have disclosed the violations to the purchaser, then they are making the purchase fully aware of the violations. However, you may lose the sale because of it.
On the other hand, it you did indemnify the purchaser, FOR THESE VIOLATIONS ONLY then you better make sure you address them and get them fixed. You can't indemnify them for every violation that may occur in the future; but you could for the ones open.
Again, I think you should consult with legal so that you know your options and impact.
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