[Aiden_80]

I put my home up for sale in Seven Hills, and was fortunate enough to have cash offers in which I recently accepted one. So far, the transaction has been pretty smooth, no speed bumps from the buyers who've had the home inspected. The home is now in escrow and we expect to close within days, but low and behold, I get a CC&R violation from the HOA noting maintenance issues. Mind you, I haven't heard a thing from the home owners association since last year, but less than a week after the for sale sign goes up, I get the violation. Normally, I would simply repair the issue and be done with it as I did in the past, but now the violation is for something far more major than simply pulling out some weeds or hiding the trash cans; They noted the siding on the house is rotting and needs to be repaired.

This issue has me a bit worried now because I've heard of HOA horror stories during buying and selling. We all know how HOA's are relentless and ready to sue or place liens on their neighbor's home due to noncompliance. Again, we are literally closing in days with an all cash offer and the buyer's inspection did not note this discrepancy. I'm completely current with my HOA assessments and have no outstanding liens/fines on the home. I have 10 days to fix this issue before being fined or disputing it, but we're set to close before then

What are your suggestions as to how I should proceed?

By the way, my realtor said to ask for an extension since we're about to close anyway... It sounds shady, plus the HOA will probably start hassling the new owner once we close IF they even LET us close with this new violation. Could the new owner sue for not disclosing this during their due diligence period? Am I even allowed to repair things on the home during the buyer's due diligence period?

[lvoc]

Originally Posted by Aiden_80

I put my home up for sale in Seven Hills, and was fortunate enough to have cash offers in which I recently accepted one. So far, the transaction has been pretty smooth, no speed bumps from the buyers who've had the home inspected. The home is now in escrow and we expect to close within days, but low and behold, I get a CC&R violation from the HOA noting maintenance issues. Mind you, I haven't heard a thing from the home owners association since last year, but less than a week after the for sale sign goes up, I get the violation. Normally, I would simply repair the issue and be done with it as I did in the past, but now the violation is for something far more major than simply pulling out some weeds or hiding the trash cans; They noted the siding on the house is rotting and needs to be repaired.

This issue has me a bit worried now because I've heard of HOA horror stories during buying and selling. We all know how HOA's are relentless and ready to sue or place liens on their neighbor's home due to noncompliance. Again, we are literally closing in days with an all cash offer and the buyer's inspection did not note this discrepancy. I'm completely current with my HOA assessments and have no outstanding liens/fines on the home. I have 10 days to fix this issue before being fined or disputing it, but we're set to close before then

What are your suggestions as to how I should proceed?

By the way, my realtor said to ask for an extension since we're about to close anyway... It sounds shady, plus the HOA will probably start hassling the new owner once we close IF they even LET us close with this new violation. Could the new owner sue for not disclosing this during their due diligence period? Am I even allowed to repair things on the home during the buyer's due diligence period?

Fix it. Very likely to be an issue with disclosure to the buyer particularly if any significant cost involved. I would see little likelihood of it preventing a close. But it will cause trouble afterwards.

[cully]

Has the new owner received a buyer disclosure packet from the HOA mgt? It should mention this.

And, if the violation was after such a packet went out, you can be sure the hoa mgt will let the buyers know in a few weeks that you got this notice before closing and ignored it. And then the buyers would sue you. So, it'll be found out one way or another. Seems better to fix it now rather than pay legal fees on the issue in the future and still have to fix it.

THAT said, one is often allowed a re-check question with the inspector and you can ask him about this one area while it's fresh in his mind. You can also send the inspection to the mgr. and ask why the mgr is requiring more than the inspector.

[Aiden_80]

Originally Posted by cully

Has the new owner received a buyer disclosure packet from the HOA mgt? It should mention this.

And, if the violation was after such a packet went out, you can be sure the hoa mgt will let the buyers know in a few weeks that you got this notice before closing and ignored it. And then the buyers would sue you. So, it'll be found out one way or another. Seems better to fix it now rather than pay legal fees on the issue in the future and still have to fix it.

THAT said, one is often allowed a re-check question with the inspector and you can ask him about this one area while it's fresh in his mind. You can also send the inspection to the mgr. and ask why the mgr is requiring more than the inspector.

I have no idea if the buyer received a disclosure packet from the HOA; however, I turned in my own home disclosure noting zero deficiencies a week before I got the CC&R violation in the mail. It wouldn't do a bit of good to compare inspection standards to that of HOA standards because the association is a different entity in terms of what it wants, and it's no secret that they'll make up rules as they see fit.

I just find it so incredibly odd that I go almost a year without a single violation, yet as soon as I put up a for sale sign, I get one. It's almost as if they targeted me...

Now, I have no problem fixing this issue, but my worry is having to redo disclosure paperwork and possibly have to reduce the price of the home whether the issue is fixed or not. I don't want to scare the buyers away for such a miniscule albeit somewhat expensive issue - Probably under 1K.

Lastly, the HOA can't say I ignored a violation if they can't prove I got the letter in the mail (I live in California). Am I wrong? I know, shady, but again the home is beautiful, well maintained, professionally landscaped, under 5 years old, buyer inspection turned up clean... Not too mention the fact that the buyers went well above list to beat 4 other cash offers. It's a nice house! The HOA appears to be the only ones not happy about my home being sold.

Now, don't get me wrong, I agree that I should fix the issue and will, but I don't like that my agent said to extend and ignore the violation. I get why, but I'd like to avoid litigation and just be gone with shady Vegas real estate/HOA practices.

Thank you for your enlightening responses.

[longton52]

<<< They noted the siding on the house is rotting and needs to be repaired. >>>

You aren't denying that the problem exists so I don't think you have any choice but to reveal the violation to the buyers agent immediately, and get it fixed. Otherwise it will haunt you.

If you think the HOA is wrong in their assessment, call a contractor ASAP to dispute the complaint, but in the meantime you still need to reveal the violation to the buyer.

Did the HOA violation include HOW they determined the siding was rotting ... did a contractor assess the damage? or was it just a bitchy neighbor writing a complaint? The situation seems odd to me.

[cully]

So you understand, the HOA buyer disclosure packet is not the same as a listing disclosure on house problems. Nevada does require the buyer disclosure packet on hoas. Such a packet includes hoa rules, regulations, financial standing, lawsuits against the HOA, fees paid up on the home one is buying, etc. I don't know if it also includes violations, although one would think so.

Have you told them about your inspector? Did he take pix during his inspection and send them to you? If he took one of the problem area you could send that to the hoa. Do you have a neighbor in your Las Vegas neighborhood who could take a look and take a picture?

It wouldn't be terribly unusual if they got the wrong house. Maybe there's a nearby house with that problem.

[ddrhazy]

Repair it, you have time.

[lvoc]

For goodness sake. Repair it. After repair there is no requirement to disclose it.

With the exception of a few things like water damage there is no requirement to disclose that which has been repaired.

The inspector almost certainly declared the problem cosmetic. And it is likely cosmetic. The HOA cares about cosmetic problems. The disclosure laws do not.

[Tek_Freek]

Having gone through two inspections recently I'd ask for a re-inspection of the specific area mentioned and ask for pictures as well as an opinion about whether or not the problem is cosmetic. If the second inspection shows nothing I'd question the HOA regarding the violation.

This does depend on what the repair would cost. If it's minimal, why bother? If it's a large sum it might be worth an extra effort.

DM me and I'll give you the address of an excellent home inspector.

[Aiden_80]

Originally Posted by longton52

<<< They noted the siding on the house is rotting and needs to be repaired. >>>

You aren't denying that the problem exists so I don't think you have any choice but to reveal the violation to the buyers agent immediately, and get it fixed. Otherwise it will haunt you.

If you think the HOA is wrong in their assessment, call a contractor ASAP to dispute the complaint, but in the meantime you still need to reveal the violation to the buyer.

Did the HOA violation include HOW they determined the siding was rotting ... did a contractor assess the damage? or was it just a bitchy neighbor writing a complaint? The situation seems odd to me.

It's mainly a bitchy HOA neighbor, but there does appear to be bird crap on the siding in a few spaces from the pictures they took, which is why I don't really want to dispute or ignore it. The issue was that we're literally 5-6 days from closing.

Okay guys, here's the deal. I called my realtor and told her that I wasn't comfortable with ignoring the violation and thought it would be best to simply disclose the issue to the buyer and see if they mind handling it after we close (due to the time restraint,) or we can just get it done in the next week. She said the buyers could probably care less as they're apparently really motivated and this is a non-issue being we're so close to closing. I already got a quote for less than a few hundred to fix the issue so I have the contractor on standby.

lvoc, spot on, my friend. Realtor said it's mainly cosmetic and to just reply to the association with our plans once the buyer responds. Too easy.

Thanks people!