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I wonder if this is a foreclosure. Odd to list a property as buyer not being able to check what is lawful by Texas law.
I also have to wonder if you have a realtor. A lot of warning signs here.
So you read the list of 15 or 16 things you will give up knowing about?...well, you found the bylaws etc addressed in items 1 and 2...so 14 or 15 items you will not have knowledge about.
With all the problems one can have with POAs and using the other side's realtors and buying foreclosures...or even just one of those things...I would not want to buy in such a situation.
I've had contracts with that option before, but it was only when a buyer was moving houses within the same community, thus they were already aware of the HOA rules and regs.
Your realtor should be able to provide you with the Deed info and HOA info.
Is that the Title company that will clear the background for the buyer?
Quote:
Originally Posted by cully
I wonder if this is a foreclosure. Odd to list a property as buyer not being able to check what is lawful by Texas law.
I also have to wonder if you have a realtor. A lot of warning signs here.
So you read the list of 15 or 16 things you will give up knowing about?...well, you found the bylaws etc addressed in items 1 and 2...so 14 or 15 items you will not have knowledge about.
With all the problems one can have with POAs and using the other side's realtors and buying foreclosures...or even just one of those things...I would not want to buy in such a situation.
HOA info is online. what I don't know is the owner's record with HOA.
Quote:
Originally Posted by lhafer
I've had contracts with that option before, but it was only when a buyer was moving houses within the same community, thus they were already aware of the HOA rules and regs.
Your realtor should be able to provide you with the Deed info and HOA info.
HOA info is online. what I don't know is the owner's record with HOA.
Which is irrelevant to you, except that any fines or assessments have to be cleared by the seller before the deed can be transferred. That will be handled by the title company.
Your agent (assuming you have one) can simply draft up the HOA addendum as you wish it to be, and that's what they should have done when you made your offer. It is marked as being part of the contract and is included, signed by you, with the offer, before the seller ever gets it.
Make NO assumptions about an HOA and the docs without reading them. You can probably (but not always) find the CCRs online and read them that way, but there is also information on that form about who pays for what expenses of the transfer and that's important, as well.
I am buying a house. When I look at the contract, the Addendum about HOA (In Texas, this is called ADDENDUM FOR PROPERTY SUBJECT TO MANDATORY MEMBERSHIP IN A PROPERTY OWNERS ASSOCIATION) has been pre-assigned by the sellers. There is one selection saying : 4. Buyer does not require delivery of the Subdivision Information.
Because this has been pre-assigned by the seller, I can not change it.
My question is, what is the worst case by NOT seeing the Subdivision Information (it includes the deed restrictions, and resale certification from HOA) before closing? under what circumstances, the seller wants to do this?
Since when can you not change terms because the seller pre signed the contract? Is this unique to Texas?
I always obtain all HOA disclosures before I will list a property in an HOA.
As a buyer/ buyer's agent I would not offer on a property unless I had reviewed the HOA documentation.
HOA info is online. what I don't know is the owner's record with HOA.
This is called a Paid Assessment Letter( PAL) in my neck of the woods. The standard contract requires the seller to disclose they are current with assessments and how assessments will be prorated. Days or weeks before closing, the buyer's attorney typically requests the association to provide such a letter. I imagine the Title Company does this in those areas that do not use attornies to close.
If the seller is not current, the HOA is paid out of the closing proceeds. If proceeds are insufficient, after the sellers mortgage and property tax escrow, the seller has to bring his account current of the sales will not close.
I appreciate laws and customs vary, state to state and within state.
Which is irrelevant to you, except that any fines or assessments have to be cleared by the seller before the deed can be transferred. That will be handled by the title company.
This is completely false.
A deed can be conveyed regardless.
The buyer does not have personal liability (in personam) for any alleged debt the seller might have to the HOA corporation. However, the property is security for the debt regardless of who owns it so there is in rem liability even after transfer of ownership. This means that the HOA can foreclose the buyer's interest in the property due to the seller's alleged debt even though the HOA could not pursue the buyer personally for that debt. So the buyer would be threatened with foreclosure in order that the HOA's vendors could collect whatever they claim is owed.
The title company will either except (i.e. exclude) coverage for amounts allegedly owed or will require all amounts owed be paid in order to close. This has to do with insurance coverage rather than with whether ownership can transfer.
The OP posted this inquiry twice. A more detailed response was provided for the other post. However, in brief the "resale certificate" was a racket largely cooked up by HOA management companies who charge all sorts of fees for their "service". The primary value of a resale certificate to a buyer is the estoppel effect - if the buyer gets a resale certificate, the HOA is estopped from making a claim for any amounts owed or claims existing as of the date of preparation of the resale certificate. So the estoppel effect is the primary value to you. There is a work around if dealing with difficult HOA management. The work around is set forth at Texas Property Code 207.004.
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