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Old 05-23-2012, 11:28 AM
 
7 posts, read 35,500 times
Reputation: 11

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Hello,

I'm looking for some feedback and help as to what my options are.

Got an accepted offer back at the end of March 2012. Already had pre-approval from a lender. I was submitting paperwork and answering questions to get to a final approval. The closing date was scheduled for 5/25/12. I'm told everything is fine from our lender and we're right on track until about 2 weeks out from closing.

I found out the seller's listing agent took over a month to get the condo documents to the lender which pushed back a condo approval by the lender. Now it seems like the condo approval won't happen as there are delinquent HOA fees.

Do I have any options? From my understanding the condo questionnaire should have been completed well before two weeks before closing. We went through home inspections, appraisals, setting up movers, and having a contractor come out for estimates on new floors.

Is there anyone that can be held accountable for this? Seems like there should be a straightforward process that was not followed here.

Thanks for any help!

Also, this is in Boston, MA.
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Old 05-23-2012, 11:48 AM
 
239 posts, read 545,457 times
Reputation: 188
See your RE Lawyer. If nothing was put into the contract to penalize lateness, then you might be out of luck?
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Old 05-23-2012, 12:32 PM
 
7 posts, read 35,500 times
Reputation: 11
That seems to be the case...I was hoping there are other options. I'm looking into seeing what the delinquent amount is. If it's not too much it might be worth paying the amount to get the HOA in compliance. Any downsides to this?
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Old 05-23-2012, 01:53 PM
 
Location: Needham, MA
6,482 posts, read 9,659,962 times
Reputation: 5490
Did your agent write into the contract a condimium documents addendum? I always put one on an offer when it's a condo. It only spells out the timeframe the documents must be provided within and that you have the right to review them. It doesn't have any kind of penalty written in except that the buyer could back out if the contract were violated. I find though that putting a deadline on things often motivates people sufficiently enough.

Why has the unit owner fallen behind on payments? This fact would concern me. What else are they not paying? RE taxes? Water bill perhaps?

Whether the agent got you this paperwork in time or not seems to be the lesser issue. If the HOA fees are not up to date, the HOA will not issue a 6D certificate which you'll need to close on the condo.
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Old 05-23-2012, 02:22 PM
 
7 posts, read 35,500 times
Reputation: 11
Thanks for the info.

The owner of our unit is up to date. It is other owners that are delinquent. There was no date specified for the condo docs but I have learned my lesson and will always make sure that is included in the future.

I find it hard to believe that the management company really has 40% (as they claim) delinquent. I think there is confusion with an assessment from a few years ago.

The HOA gave owners the option to pay the assessment at once or add the amount onto their monthly HOA fees. I think the confusion is that the management company is not breaking out which part is HOA fees and which part is for the assessment. Not sure what to do here...The management company says they don't want to put this in writing which is what our lender needs to get this past the underwriters.

Hopefully have more info soon! please keep all suggestions coming!
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Old 05-23-2012, 05:51 PM
 
Location: Lexington, SC
4,281 posts, read 10,739,306 times
Reputation: 3716
Quote:
Originally Posted by Alexpi View Post
Thanks for the info.

The owner of our unit is up to date. It is other owners that are delinquent. There was no date specified for the condo docs but I have learned my lesson and will always make sure that is included in the future.

I find it hard to believe that the management company really has 40% (as they claim) delinquent. I think there is confusion with an assessment from a few years ago.

The HOA gave owners the option to pay the assessment at once or add the amount onto their monthly HOA fees. I think the confusion is that the management company is not breaking out which part is HOA fees and which part is for the assessment. Not sure what to do here...The management company says they don't want to put this in writing which is what our lender needs to get this past the underwriters.

Hopefully have more info soon! please keep all suggestions coming!
The management company works for the association's BOD. Get a name or two on the association's BOD and contact them. Be polite, not demanding. Start with I am looking to buy a unit and I am having problems. Can you help me?
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Old 05-23-2012, 06:04 PM
 
Location: Needham, MA
6,482 posts, read 9,659,962 times
Reputation: 5490
Quote:
Originally Posted by Alexpi View Post
Thanks for the info.

The owner of our unit is up to date. It is other owners that are delinquent. There was no date specified for the condo docs but I have learned my lesson and will always make sure that is included in the future.

I find it hard to believe that the management company really has 40% (as they claim) delinquent. I think there is confusion with an assessment from a few years ago.

The HOA gave owners the option to pay the assessment at once or add the amount onto their monthly HOA fees. I think the confusion is that the management company is not breaking out which part is HOA fees and which part is for the assessment. Not sure what to do here...The management company says they don't want to put this in writing which is what our lender needs to get this past the underwriters.

Hopefully have more info soon! please keep all suggestions coming!
Always, always have a condominium documents addendum on your offer. Not only does it set a deadline for the seller to provide you with the condo documentation, but typically it makes the offer subject to your satisfactory review of those documents. If you don't like what you see then you can back out. Are you working with a buyer's agent? I can't imagine they wouldn't have done this automatically.

I'm confused about one part of your post. Are you saying people are on time with their condo fee but delinquent on their assessment payment or are you saying people are not delinquent on anything but the management company is considering assesment payments due in the future as delinquent even though they're not?

Quote:
Originally Posted by accufitgolf View Post
The management company works for the association's BOD. Get a name or two on the association's BOD and contact them. Be polite, not demanding. Start with I am looking to buy a unit and I am having problems. Can you help me?
Good suggestion. The condo board must have a treasurer and probably a president. Those would be two good people to connect with. Always remember: you catch more flies with honey than you will with vinegar.
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Old 05-23-2012, 06:41 PM
 
16,019 posts, read 19,688,452 times
Reputation: 26200
I am not a real estate person, but it seems logically the the sellers agent messed up...they should be accountable imo I might contact that realtors broker owner....see if things can get moving again. What a shame. Unless the process can just be delayed, you did say they had submitted it albeit late. Hope you find out something helpful.
Quote:
Originally Posted by Alexpi View Post
Hello,

I'm looking for some feedback and help as to what my options are.

Got an accepted offer back at the end of March 2012. Already had pre-approval from a lender. I was submitting paperwork and answering questions to get to a final approval. The closing date was scheduled for 5/25/12. I'm told everything is fine from our lender and we're right on track until about 2 weeks out from closing.

I found out the seller's listing agent took over a month to get the condo documents to the lender which pushed back a condo approval by the lender. Now it seems like the condo approval won't happen as there are delinquent HOA fees.

Do I have any options? From my understanding the condo questionnaire should have been completed well before two weeks before closing. We went through home inspections, appraisals, setting up movers, and having a contractor come out for estimates on new floors.

Is there anyone that can be held accountable for this? Seems like there should be a straightforward process that was not followed here.

Thanks for any help!

Also, this is in Boston, MA.
Quick reply to this message
 
Old 05-23-2012, 06:48 PM
 
Location: Lexington, SC
4,281 posts, read 10,739,306 times
Reputation: 3716
Alex

If I still lived in MA (which I did) and it was a few years back (which it was), I could call my friend Sal DiM....and make this go away....LOL
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Old 05-23-2012, 08:38 PM
 
Location: Aiken, South Carolina, US of A
1,765 posts, read 3,863,108 times
Reputation: 3571
Alex,
Look at it this way, the Management company is doing you a big favor.
You don't want to buy a condo in a Condo complex that is having
financial difficulties do you?
Look for something else.
This whole deal doesn't sound right to me.
Do you know what I mean?
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