In any case, you owe the assessment once you complete the sale, and I would expect there will be a number of questions from your attorney, title company and any lender you might use. Doubt there can be a purchase here unless it is cash. This should in and of itself raise a red flag and make you aware there is significant risk in the ownership.
This has always been my rule of thumb. Of course first you need to speak to an attorney that specializes in HOA's. The second thing I would do is open up a separate account and escrow my monies myself until the issue is resolved. Just remember if no one pays into the HOA if you share a common hot water heater or HOA pays for water they will eventually be unpaid.
However, the listing said there's no established HOA. (The listing also said no central air conditioning and no pets, but this turned out to be untrue). I was able to secure a HomePath loan, but without an association...it disqualifies me from alot of awesome programs like idha.
Since it is a FannieMae contract, there's a lot of waived rights and I'm wondering what my attorney's role is in this. I don' t even know his roles and responsibilities. I know he's there to "protect" me, but he comes off pretty passive. "The contract is as-is...do you want it or not" kind of thing. I don't even know what questions to anticipate or ask.