Does a purchasing a Fannie Mae foreclosure void the covenants and deed restrictions placed on a property?
Page 16 of the PA Assoc. of Realtors sales contract mentions exemptions to the Uniform Planned Community Act where a Certificate of Resale is not required when "(6) The transfer of the unit is by the government or a governmental agency" and "(7) When transfer of the unit is the result of a foreclosure".
I interpret the above to mean that a foreclosed and resold property, particularly from Fannie Mae, is not bound by the original property covenants - the deed is clear. Obviously this is a legal matter requiring proper counsel and I am not looking for specific legal advice - just curious if anyone has seen this come up before and how it turned out.
It does not matter who sells the property or who buys the property they need to abide by teh deed restictions on the property. When a govt agency sells the property they will not provide a lot of the typcial documentation but that is there position to ensure they sell the property in as is condition. The deed will not be transfered via a warranty deed but either a speical warranty deed or a corp deed. However, if the deed is missing the covenants I am thinking that is a mistake and should be taken back to the title compnay to complete a corrected deed. Foreclosing attorney's sometimes make mistakes! I am currently working a case that the legal discription had to be corrrected because the foreclosure deed was incorrect.
Good Luck
Keith Manson
First Weber Group
Certified Distressed Property Expert
Greenfield,Wisconsin
Pete,
No. That means the the government agency does not have to give the buyer a copy of the docs. The buyer has to obey the convenants and restrictions but has too get the docs from the hoa. Hope that helps. Any further questions, feel free to contact me.
Sean LaSalle
Weichert Realtors
610-737-5369
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