Selling a home can be a challenge. Finding a buyer is only part of the battle when it comes to residential real estate sales whether here in Delaware or elsewhere. Sellers may expect lenders, title agents and appraisers, among others, to have some sort of say in whether the sale goes through, but they probably never expected the homeowners association to be an issue.

If a seller knows that the HOA is involved in some sort of lawsuit, he or she may want to inform the buyer. It does not matter whether the lawsuit is about unpaid dues, construction defects or some other issue. If the potential buyer, or someone connected to the buyer, finds out about the lawsuit on his or her own, it could jeopardize the sale.

That does not mean that the seller must advertise the HOA’s lawsuit, but anyone with a genuine interest in the property should be told. It may help to discuss the matter with the board in order to gain an understanding of the issues involved, along with how the disclosure should occur. It may turn out that the board is about to enter into a settlement or reach some other resolution to the litigation.

Lenders may not allow a residential real estate sale here in Delaware to go through if the HOA is involved in any sort of litigation. Even if the potential buyer is not the first to find out about the lawsuit, when the lender finds out, it could inform the buyer that the sale cannot go through. If the seller provides the information up front, it may be possible to work around it depending on the situation.