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IF it does need to be replaced, now is the time to consider reducing the actual lawn area and installing something other than St. A or Bermuda. I'm a big Zoysia fan, but minimizing the 'need' for turf-grass would be MY first step. As to the responsible party, if you close and move in, the HOA will be knocking on YOUR door, I reckon.
I have to wonder why the HOA is so keenly aware of the sod situation, unless the previous homeowner simply let it die a while back(generating complaints) and the HOA has been 'on the case' for a while.
Why is the HOA sending you notices when you are not yet the owner? The property owner is the one they should be addressing this issue with.
I have a feeling that you may be stuck replacing the sod. You were aware of the state of the lawn (I assume) when you made an offer on the house and had the opportunity to review the HOA rules during the option period. You should have requested it be addressed then. It may be too late now.
That said, resodding a lawn can easily cost $10,000+, so you may want to consider backing out. You'll lose your earnest money, but it's still a lot less expensive than the cost of sod. Also, if the seller knows you are going to back out, they may offer to do it. Putting it back on the market means they will have to incur the cost of replacing it anyway - either that or face fines from the HOA.
Also, have you asked the HOA if they have contacted the homeowner? If they have, it may have been prior to your offer. If they can provide proof that the homeowner was aware of the issue, then you are probably off the hook and I would not close until it is corrected or the price adjusted accordingly.
We're under contract on a home in Round Rock. We received the HOA disclosure paperwork and they included a form saying the sod needs to be replaced and the buyer must submit the forms for approval of replacing the sod within 30 days of closing. The sellers didn't disclose the sod as being a known problem with the property. We're past our option period and wondering if the HOA can require us to replace the sod? If it was a known problem I would think the sellers would be required to fix the sod. Are they able to pass this problem onto the buyers?
Rockie,
Sounds like you might be referring to statements inside a "resale certificate" rather than statements on a seller disclosure form.
The "subdivision information" is supposed to include a number of items by statute (Tex Prop Code §207). One of those items is called a "resale certificate" which actually consists of a number of other items itself.
One of the few benefits of a resale certificate is that it offers an "estoppel" effect against claims by the HOA corporation as follows: "A buyer, buyer's agent, owner, owner's agent, lender, and title insurance company and its agent are not liable for any debt or claim existing on the preparation date of the resale certificate that is not disclosed in the resale certificate." In other words, if you receive a valid resale certificate that lists no claims or conditions, the HOA cannot take legal or extralegal actions against you or your property for the claim/condition that existed at the time of preparation of the resale certificate.
In your case, the management company is attempting to "preserve" an opportunity to litigate that might not exist at all by "disclosing" this "condition" on the resale certificate. The homeowner might never have even received any such notification from the management company. This claim may have appeared for the first time when the homeowner tried to sell their property. You might want to think about that.
There are certain requirements for a resale certificate to be "valid". See, e.g., Tex Prop Code §207.001(5) and §207.003(b). Now there are a couple of things that the management companies usually fail to do (on purpose) which is beneficial to YOU because of the right to exit that is present in the standard TREC addendum forms. You might want to think about that too because you will be a seller the next time around. Assuming you are using the standard TREC forms, if you are considering exercising a right to terminate for failure to deliver the subdivision information/resale certificate then look for the following:
1. Was the resale certificate actually signed? If not then you did not receive a valid resale certificate. A typed name is not a signature. Just remember that you are relying upon this document to protect you against claims to be made by the HOA and its management company in the future. An unsigned certificate would not protect you. The management companies sell these "certificates" but frequently will not sign them in order to ensure that the owner and buyer do not get the benefit of the estoppel effect. Do not pay for an invalid resale certificate.
2. Was a certificate of insurance included? Frequently this will be left out and the management company will state "insurance information". "Insurance information" is not a certificate of insurance. The management companies that engage in this practice are typically trying to conceal the fact that the HOA does not own an insurance policy. That's a subject for a different time. If no certificate of insurance was included then you did not receive a complete/valid resale certificate. The HOA board often has no idea what the management companies are putting on these certificates or what claims are being made.
Regarding disclosures and misrepresentations: Some homeowners in Round Rock recently prevailed in an HOA case where the management company made numerous misrepresentations and provoked litigation against the homeowners. Although the homeowner victims won, they still were harmed by the $10,000 in attorney fees incurred to defend themselves in the case. You might want to investigate whether you would be dealing with the same management company or subdivision: Round Rock couple wins court battle with HOA
In any event look to see if you have a valid resale certificate. If the resale certificate is invalid then the resale certificate offers no defense from any claim - including a claim for past assessments.
Why is the HOA sending you notices when you are not yet the owner? The property owner is the one they should be addressing this issue with.
I have a feeling that you may be stuck replacing the sod. You were aware of the state of the lawn (I assume) when you made an offer on the house and had the opportunity to review the HOA rules during the option period. You should have requested it be addressed then. It may be too late now.
That said, resodding a lawn can easily cost $10,000+, so you may want to consider backing out. You'll lose your earnest money, but it's still a lot less expensive than the cost of sod. Also, if the seller knows you are going to back out, they may offer to do it. Putting it back on the market means they will have to incur the cost of replacing it anyway - either that or face fines from the HOA.
From the original post, it's my impression that the notice was contained in the documents that the OP received as part of the contract process. The seller is required to provide such documentation to the buyer and the buyer has a certain period of time after receipt to review it and decide whether or not to move forward on the deal without losing their earnest money. So it's not surprising that they would have received it - that's part of the reason for the process, so that such things are disclosed prior to conclusion of the sale.
Thanks for everyone's comments and advice. The notice to replace the sod was in the resale certificate from the HOA (via the Title company). The certificate was signed and includes the insurance certificate. The certificate doesn't indicate if the sellers were previously aware of the issue with the sod.
We love the home and don't want to back out of the deal. When we looked at the home on 3 different occasions we didn't see any areas of the sod that we thought would be a problem with the HOA. The front yard looks great, the back yard has some dead patches, but it's probably because the sellers have a dog.
Our agent has told us that the sellers have been working with the HOA and it was a mistake on the HOA's part. We've asked for an updated resale certificate so we have some written proof that the issue is resolved/dismissed, but haven't heard any word on when/if we'll receive it. We have everything in writing from our Realtor letting us know it won't be an issue, but I won't feel like we're out of the clear until we have something more official in writing.
We love the home and don't want to back out of the deal. When we looked at the home on 3 different occasions we didn't see any areas of the sod that we thought would be a problem with the HOA. The front yard looks great, the back yard has some dead patches, but it's probably because the sellers have a dog.
Our agent has told us that the sellers have been working with the HOA and it was a mistake on the HOA's part.
What neighborhood is this in? After last summer, you pretty much have to have a 1930s dust bowl for a front yard for our HOA to get on your case. Almost every yard on our street has stressed or dead patches (although this early spring is doing wonders). The only ones with really nice looking yards are the ones that ignored the watering restrictions.....
OP - Weeds look green this time of year. We have 3 houses on our street that were dead and brown last year that are green now. Perhaps the owner received notification from the HOA of non-compliance and chose to ignore the notification; I'm guessing that is the case in our neighborhood. The seller is culpable, in my opinion, and likely just chose to ignore the HOA. On our street, other homeowners followed the watering schedule and nursed their yards the best they could during water restrictions - these 3 just let the yard go to dirt. I'd back out unless the current owner resods the yard or gives you the equivalent $$$ to replace the grass.
This, in my opinion, is not the HOA's fault, but likely the seller. Makes you wonder what else they didn't disclose - foundations need a bit of water too.
Round Rock is full of good deals on houses now, buyers market; or so it seems.
One more thought. Real estate disclosures - the agent can only believe what the homeowners convey to them. It has been our experience that owners want to sell. Period. Their convenient "memory lapses" turn into an oops, "my bad" and you get stuck with the repair, or in your case new sod. Along that train of thought, maybe the yard can recover with some water and a good lawn service - I bet the HOA would be happy to give you the opportunity to try a less expensive option first; it's worth a try.
As for disclosures, thank goodness this is my last house. The previous owners conveniently forgot to mention the lightning strike and the 100 year flood plain (muy kudos to CD members for helping me with this from far far away) - the owners wanted to sell and we were stupid. Our house in Houston was struck by lightning 3x - once knocking off the chimney and the other times frying the electrics (we were hit once when we lived there); the house was flooded as well and all the windows leaked - not a mention in the disclosure. However, all of this was disclosed when we sold and moved to our home planet. unfortunately here we are again.
Homeowners and dodgy realtors, sigh, who can one trust anymore. I guess you just do your best.
Seriously, try approaching the HOA with a plan to revive your lawn. I don't know what kind of grass you have (would affect the success), but maybe as new owners the dirty slate from the previous owners would be wiped clean.
We're past our option period and wondering if the HOA can require us to replace the sod? If it was a known problem I would think the sellers would be required to fix the sod. Are they able to pass this problem onto the buyers?
Yes, as the new owner, you inherit any unresolved violations of HOA rules. Make the seller adjust the price or install the sod prior to closing.
Option Period doesn't matter. Read para A1 of the HOA addendum to your sales contract. It states that you can terminate the contract for any reason within 7 days of receiving HOA docs. If you're within that 7 days still, you can threaten to terminate if the owner doesn't agree to cure the problem or provide an offset.
Sod costs about $150 per installed pallet. A pallet covers about 400 sqft of yard. Calculate about how much it's going to cost and get a credit toward your closing costs (same as cash) so you can select the vendor and control the job after closing.
Steve
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unfortunately here we are again.
