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Old 01-27-2018, 05:42 AM
 
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I'm looking at a condo and I have some reason to suspect that there are deliquent HOA fees(don't know for sure though). Could be nothing and that would be great, and also could just ask the seller and he would just tell me and that would also be great.
But if things aren't on the up and up, how do I find out for sure? Obviously if there is a a lien I will know no problem. But what if there is no lien? What is to prevent the HOA from coming after me, after the fact if seller says there are no delinquent fees and there is no lien, and nothing is disclosed( by the seller prior to sale).

If this comes to pass am I liable for the past due fees, if there is no lien and nothing is disclosed?
However I do not want to buy into an ugly situation where I am litigating with the HOA even if I am not legally responsible for fees.
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Old 01-27-2018, 05:52 AM
 
Location: Cary, NC
31,603 posts, read 55,320,924 times
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Quote:
Originally Posted by jdm2008 View Post
I'm looking at a condo and I have some reason to suspect that there are deliquent HOA fees(don't know for sure though). Could be nothing and that would be great, and also could just ask the seller and he would just tell me and that would also be great.
But if things aren't on the up and up, how do I find out for sure? Obviously if there is a a lien I will know no problem. But what if there is no lien? What is to prevent the HOA from coming after me, after the fact if seller says there are no delinquent fees and there is no lien, and nothing is disclosed( by the seller prior to sale).

If this comes to pass am I liable for the past due fees, if there is no lien and nothing is disclosed?
However I do not want to buy into an ugly situation where I am litigating with the HOA even if I am not legally responsible for fees.
The questions bring you right back to your contract.
It should indicate how fees will be covered.

We use closing attorneys, but wouldn't title company functions be similar to this?:
Our closing attorneys contact the HOA Management firm, request the status, and collect fees to date at closing from sellers' proceeds.
Nice and clean.

Of course, some HOAs are in disarray, and getting figures from them can be a challenge. So, you close when you have a clear indication of the status.
And, if the sellers are upside down in the condo, sellers getting money for a significant arrearage can be difficult.

If the closing attorney misses HOA arrearages, and you are granted clean title, you may have a title insurance claim, or an attorney E&O claim, if the attorney will not make it right.
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Old 01-27-2018, 06:19 AM
 
4,383 posts, read 8,680,492 times
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Quote:
Originally Posted by MikeJaquish View Post
The questions bring you right back to your contract.
It should indicate how fees will be covered.

We use closing attorneys, but wouldn't title company functions be similar to this?:
Our closing attorneys contact the HOA Management firm, request the status, and collect fees to date at closing from sellers' proceeds.
Nice and clean.

Of course, some HOAs are in disarray, and getting figures from them can be a challenge. So, you close when you have a clear indication of the status.
And, if the sellers are upside down in the condo, sellers getting money for a significant arrearage can be difficult.

If the closing attorney misses HOA arrearages, and you are granted clean title, you may have a title insurance claim, or an attorney E&O claim, if the attorney will not make it right.
Thanks. Hopefully my agent will take care of finding this out. I will make sure he does. I am hoping I can find out before I spend money on inspection and appraisal.
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Old 01-27-2018, 06:46 AM
 
Location: Austin
7,077 posts, read 16,893,484 times
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In Texas, the seller has to provide a resale certificate to the buyer. The HOA fills out paperwork and the title company takes care of it all. If the seller is behind, the HOA will note it on the paperwork, and it's collected at closing from their net proceeds. Buyer does not pay anything that is not theirs.
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Old 01-27-2018, 04:35 PM
 
2,741 posts, read 3,162,686 times
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Quote:
Originally Posted by FalconheadWest View Post
In Texas, the seller has to provide a resale certificate to the buyer. The HOA fills out paperwork and the title company takes care of it all. If the seller is behind, the HOA will note it on the paperwork, and it's collected at closing from their net proceeds. Buyer does not pay anything that is not theirs.
A common problem posters have is confusing HOAs and condo corporations. In most states although some laws cover both, generally the laws governing them are not the same. Condos in particular are creatures of statute and much of what the OP is asking about is covered by statutes applicable to condos - depending upon what state you are in.

It would be helpful if the OP identified WHAT STATE he is in. Laws differ.
Texas has resale certificates for HOAs and condos but they are governed by different statutes. Different laws for different types of property.

Suspect the OP is not in Texas. In other states there are documents identified as "estoppel certificates" or "estoppel letters" that serve a similar function. Namely these certificates/letters indicate an amount owed.
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Old 01-27-2018, 04:44 PM
 
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In NV and most of the west escrow requests a demand from the HOA which includes any arrears. It is simply a part of the normal flow. Seller generally has to pay $50 or $100 to the HOA for the demand. All of HOA management companies in the west have a way to request a demand.

As ICDelight points out the exact mechanism varies by state.
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Old 01-27-2018, 04:58 PM
 
Location: Columbia SC
7,963 posts, read 6,716,042 times
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HOA's do track delinquencies so you should be able to find out how much it is from their Financial Statement, but not who owes what. I believe about 6-7% delinquent is common. The main issues are those long term late like 4 to 6 months or more versus those 60 days delinquent.

In some states the buyer may be responsible for any existing delinquency.

Be sure to get an Estoppel Letter from the HOA or its Property Manager. Though it goes by different names in different states, it says there are no delinquencies and/or violations existing via the HOA. It means the HOA cannot come after you for anything that happened before you purchased.
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Old 01-27-2018, 05:35 PM
 
11,623 posts, read 5,465,637 times
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Quote:
Originally Posted by IC_deLight View Post
A common problem posters have is confusing HOAs and condo corporations. In most states although some laws cover both, generally the laws governing them are not the same. Condos in particular are creatures of statute and much of what the OP is asking about is covered by statutes applicable to condos - depending upon what state you are in.

It would be helpful if the OP identified WHAT STATE he is in. Laws differ.
Texas has resale certificates for HOAs and condos but they are governed by different statutes. Different laws for different types of property.

Suspect the OP is not in Texas. In other states there are documents identified as "estoppel certificates" or "estoppel letters" that serve a similar function. Namely these certificates/letters indicate an amount owed.
In Texas this is the same for condos as was stated above. The seller will have to pay from proceeds. The buyer is not on the hook at all.
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Old 01-27-2018, 07:50 PM
 
Location: Boise, Idaho
704 posts, read 550,560 times
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I suggest in an offer to have contingencies on the buyer's review and approval of HOA financials and the last meeting minutes (if applicable). Knowing how they respond to people that don't live up to the HOA's can make you decide if you want to live in some communities or not.
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Old 01-27-2018, 08:36 PM
 
10,713 posts, read 3,748,229 times
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Quote:
Originally Posted by IdahoBroker View Post
I suggest in an offer to have contingencies on the buyer's review and approval of HOA financials and the last meeting minutes (if applicable). Knowing how they respond to people that don't live up to the HOA's can make you decide if you want to live in some communities or not.
Standard in NV and most of the west...not true in Idaho?
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