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Old 03-16-2009, 09:50 PM
 
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Escrow is being held up because HOA wants to attach an $8,000.00 fine for previous owners not having the backyard installed. Is this legal?
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Old 03-17-2009, 12:32 AM
 
1,297 posts, read 4,934,624 times
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Quote:
Originally Posted by Frustrated47 View Post
Escrow is being held up because HOA wants to attach an $8,000.00 fine for previous owners not having the backyard installed. Is this legal?
If the HOA has followed their by-laws, given the owner proper notice etc, and filed a lein against the unit, it is legal. The 8k comes out of the escrow when payment is released. This is one of the few ways an HOA can collect on unitowners who do not pay dues, fines, or assessments.
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Old 03-17-2009, 08:54 AM
 
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And THAT's why my wife and I made sure to steer clear of any home that was part of a HOA when we were looking.
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Old 04-02-2009, 08:22 PM
 
Location: Colorado Springs, CO
1,570 posts, read 5,162,700 times
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Assuming the debit is correct, the answer would be yes - the HOA can levy the new owner. Remember the HOA was not a party in the transaction. You should send the HOA notice in writting that you are disputing the debit. That should stop their collection efforts - for a while giving you a chance to sort it out.
However, I'd question why the debit was not paid at closing? You should contact the title company (if they closed the transaction) - review your contract to purchase and see what it says. Here in Colorado there is a section in the contract that addresses the HOA fees, special assessments, etc. Most buyers want the seller to pay all fees due to the HOA at closing. I'm sure you did, too! Check your documents.
If the HOA filed a lien on the property to secure the debit of $8,000.00 the title company should have been sure the debit was paid to deliver clear title.
Hope this helps.
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Old 04-02-2009, 08:43 PM
 
Location: RSM
5,113 posts, read 17,034,108 times
Reputation: 1884
Quote:
Originally Posted by MMichelle View Post
Assuming the debit is correct, the answer would be yes - the HOA can levy the new owner. Remember the HOA was not a party in the transaction. You should send the HOA notice in writting that you are disputing the debit. That should stop their collection efforts - for a while giving you a chance to sort it out.
However, I'd question why the debit was not paid at closing? You should contact the title company (if they closed the transaction) - review your contract to purchase and see what it says. Here in Colorado there is a section in the contract that addresses the HOA fees, special assessments, etc. Most buyers want the seller to pay all fees due to the HOA at closing. I'm sure you did, too! Check your documents.
If the HOA filed a lien on the property to secure the debit of $8,000.00 the title company should have been sure the debit was paid to deliver clear title.
Hope this helps.
CA works a bit diff than CO. CO you close without escrow, CA you have to go through the escrow process before you can close. so whats happening is escrow cannot close because of the outstanding 8000. they dont own the home yet and technically they can unwind the deal and get away from it if they need to.
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