Home Buying in Chicago>Question Details

ndan529, Home Buyer in Chicago, IL

Do I have to pay assessment if there's not an established HOA?

Asked by ndan529, Chicago, IL Thu May 9, 2013

The condo I want to buy has no established HOA, but still have assessment fees. the neighbor tells me that there is 5 units - 3 are owned and rented out by one person, 1 owner I spoke with, and 1 foreclosed which I intend to buy. The neighbor tells me that they write a check to the other guy and they hire people to take care of common areas. HOWEVER, I saw a ticket from sanitation inspection and the neighbor said the services are lax. I do not have any documents on the property. Can I stop paying assessment and push the investor to start an association? Is there grounds for lawsuit against me in this case?

Help the community by answering this question:

Answers

12
It sounds like you should meet with the other guys and come to some agreements BEFORE you buy into it.
1 vote Thank Flag Link Thu May 9, 2013
Best to speak to your local attorney for advise on this
0 votes Thank Flag Link Sat May 11, 2013
You need to think carefully about buying this unit. Based on what you have shared here, I would advise against it.
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.
0 votes Thank Flag Link Fri May 10, 2013
Dear HOA question,

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.
0 votes Thank Flag Link Fri May 10, 2013
Sounds like a legal issue and those folks do not respond on this site, but if it was me I would NOT pay any HOA fees until an HOA was set up properly. What can they do??
0 votes Thank Flag Link Fri May 10, 2013
Hi , you need to talk with an attorney .
0 votes Thank Flag Link Fri May 10, 2013
So I was able to look in the cook county records of deeds and found a condominium declaration, and there is an established association and the members are the developer, one other owner, and potentially myself.

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.
0 votes Thank Flag Link Thu May 9, 2013
you wont be able to get a loan in this building for many reasons. I would walk away now.
0 votes Thank Flag Link Thu May 9, 2013
Contact a Real Estate Attorney.
0 votes Thank Flag Link Thu May 9, 2013
Red flags all over the place! Hire an attorney or find another property.
0 votes Thank Flag Link Thu May 9, 2013
I would stay away from this property. It sounds like you may be paying out of pocket down the line for any issues with the property. If no HOA is established there usually is no HOA payments. Sounds sketchy to me.
0 votes Thank Flag Link Thu May 9, 2013
I would suggest you speak with a real estate attorney to your legal standing. From what you saying if there is nothing official you should be in the clear but there might be things that you do not know. Give an attorney a call to protect yourself 100%.
0 votes Thank Flag Link Thu May 9, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer