Home Buying in San Jose>Question Details

Goldfish, Home Buyer in 95111

Hi, I'm in a sticky situation with this house that we found out the this home has a HOA fee and there is no air conditioning central unit from

Asked by Goldfish, 95111 Fri Mar 2, 2012

the appraisal and inspection reports . In the agent's listing, he didn't listed that there was a HOA fee and also it stated that there was AC unit. Furthermore, the owners wanted to stay in this home for another month. What should we do to safeguard ourselves? And our agent wanted us to sign the loan/home deed asap. She said, if we didn't sign it, we will have to pay a fee to extend our loan contract. Is that true? Thanks.

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I hate to admit it but you may need to see an attorney. Remember, every attorney doesn't know real estate, so if you decide to go that way, call me at 408-690-2998 for an attorney referral
1 vote Thank Flag Link Fri Mar 2, 2012
You are buying into a Planned community and subject to the rules of the HOA documents. The fee isn't the problem. The problem is that you need to agree on the restrictions that are included in the HOA documents. First, i would ask my agent to prepare an extension of the contingency period to give you time to get and read the HOA documents.

I am assuming this is a house because condo/townhomes ALWAYS have an HOA fee. Was it disclosed on the MLS printout

There are several problems:
1. The contract states that within 7 days of the contract, the seller was to disclose to you that it was or was not an HOA property
2. If the MLS and flyer said it had AC and doesn't, there is a big problem for the seller and seller's agent
3. Both agents are negligent in that a Homeowner Association is typically disclosed on the prelim. Obviously, neither agent read the docs

If you agent is pushing you to close you have a big problem. I would be going to the managing Broker of your agent's office and demand they take care of this problem.
1. You should have someone pay your HOA fees for at least 5 years
2. Someone owes you an AC

As to the issue of the lender, rates haven't increased, so I would be shocked if there were any fees involved in an extension. So, call the lender and find out if you agent is telling you the truth. And, if they are not, consider filing a complaint with the local real estate Association and the Department of Real estate
Web Reference: http://www.guyberry.com
1 vote Thank Flag Link Fri Mar 2, 2012
Hi Bambi

Clearly, the listing agent is at fault . If you were to file a complain with the DRE or SCCAOR it's likely you will be entitled to the cost of inspections, as AC unit is missing and HOA was not called out. The issue comes up
Is that Was the Unit vacant, was an AC Unit stolen. These items are disclosed on the TDS or SSD, did you read any.

Did you not get any HOA documents? The HOA Is generally mentioned in the listing for contact.

Both the listing agent and your agent may have missed this.
Is the listing agent from out of town or listing a property that he has not seen.

These are basic disclosures that can be viewed on any Client copy of The Property or Agent copy.

You are likely entitled to an AC or a refund of your inspections.

At the end of the day it comes down to How badly do you need this property and do you want to take the steps
To file a complaint against the Agents .

You actually may have rights under the Wrong Property disclosures to back out of the deal.

Loans and rates are time sensitive, so either go forward or back out. You can always go forward
With the deal, and exercise your rights to claims, provided you have copies of print outs.

I am surprised when comparable were run on the property that your agent did not note that there is no HOA
Showing up on properties in the Development.

Good luck.
0 votes Thank Flag Link Sat Mar 3, 2012
Hello Home Buyer~

I wanted to add one more thing regarding the rent back for one month. I hope that is what it is. As in Short Sells I would be very uncomfortable with an owner staying for any additional time. You as a buyer would need to agree and if you do not they can not stay. Further more your agent should of made you aware they need the extra time before you released any of your contingency's. If the seller requested this before or an added contingency and you agreed and released than you most likely will need to comply, but if you did not they need to be out of the property. If you did the rent back will be based on the sell price and credited to you within Escrow. If this AC is an issue this will need to be signed off that you, the seller and the bank did not agree or agree to install. You will have a last walk through before your loan can fund. That will be you, your agent going through the property making sure all is as it should be. As in no surprises, no holes in the walls, any appliance missing, any fixes that you may have requested that should have been done. The property was to be maintained for and up to time of close. Than you will sign off on your last walk through so the bank can make sure all parties have done what they were supposed to do. This would be a concern to me for my client since the sellers will still be in the property and you will not be able to see what condition the property will be left in. You could ask for additional funds to be held back in case any unseen damage. But if this is a Short Sell they may not have the money. I would not want the sellers to stay on. Not a good situation with Short Sells.

Good luck~

Denise A. Szyszlo Realtor
DRE 01441160
Office:: (408) 369-2000 x319
Mobile: (408) 768-7097
Fax: (888) 334-0888
Email: denise.szyszlo@century21.com
Website: http://www.DazzleHomes.com
CENTURY 21-Alpha
419 E. Hamilton Ave, Campbell, CA 95008
0 votes Thank Flag Link Fri Mar 2, 2012
As I see it, the most important question that you need to answer for yourself is whether or not you still want this house?

If you no longer want this house, I recommend that you contact the attorney that Guy Berry recommends. Based on your description, I expect that a good Real Estate Attorney will have no trouble having the contract for the sale rescinded and having your deposit returned to you. (That is true, even if you have already removed all of your contingencies)

If you still want this house, I still recommend that you contact the attorney that Guy Berry recommends. I expect that a good Real Estate Attorney will tell you that based on your description, you have a number of remedies available to you, in addition to the sale of the house to you.

Essentially, it is your choice.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
0 votes Thank Flag Link Fri Mar 2, 2012
Hello Home.Buyer~

I wanted to add that I did answer a previous question about assessments for you. If this is a short sell and the same property I did express to you that the assessments may be the HOA fees that current homeowner may be in the rears, as it seems to be the case. So It seems your agent made you aware of this situation, someone is going to have to pay. In a short sell situation the seller/owner does not have the money and you are asking to purchase at a reduced price of what they owe. Sometimes especially in an investor own,/bank owned,/short sells, the listing agent does not list the AC even if the home has it because the owner does not want to be liable for any of the repairs if needed or needs repair. SOME appraisers sort of comply with the listing on the mls, even though they are not suppose to it depends on what the bank is allowing. I had a purchase where the home had Central AC but the appraiser did not note it because it was not on the MLS. I am going to assume by your question your agent is trying to keep you in contact without loosing this home for you or added fees. If the MLS noted Central AC and it does not have it, you can ask to have them install it, BUT short sells do not have any extra money for anything. Remember you are getting a home under market most likely 30% less than the current owner owes, they have nothing to give you nor does the bank. The bank will need to approve this or all parties will need to walk away. Extensions on a Short Sell or Bank Owned might be a fee, ask your agent to give you the written documentation from the bank or listing agent. Again this is all assumed since we are not representing you and not aware of all documents and contracts. You may need to call the Listing Broker if you are not getting answers. Real Estate Attorneys may be a bit price perhaps your agent can utilize a referral for you.

Denise A. Szyszlo Realtor
DRE 01441160
Office:: (408) 369-2000 x319
Mobile: (408) 768-7097
Fax: (888) 334-0888
Email: denise.szyszlo@century21.com
Website: http://www.DazzleHomes.com
CENTURY 21-Alpha
419 E. Hamilton Ave, Campbell, CA 95008
0 votes Thank Flag Link Fri Mar 2, 2012
Regarding the seller.....

1. Since you're buying the home the listing agent is now conveying to your agent that the homeowners want to "rent back" the house for a month from you as the new "potential" owners. Some buyers look at this as a negative because it does puts you in a position of getting the homeowners out of the house if they choose to stay longer. You would also have no way of ensuring the home would be left in good condition when they do move. As a protection, your agent should advise you that escrow needs to hold back $xxx dollars from the seller at the time of sale. You do not have to accept the terms of a rent back.

2. There appears to be an error on the part of the listing agent stating there was an AC when, in fact, there isn't. I'm speculating that you're purchasing a condo since there are HOA fees involved. If this is the case, then you're dealing with the HOA rules and regulations and you would have to check if you are permitted to install an AC. If not, would this deter you from buying the home?

If you haven't released you finance contigency, ask yourself after reading some answers posted here if you want to proceed with the purchase.

Virginia Thomas
Keller Williams Realty
DRE #01515223
0 votes Thank Flag Link Fri Mar 2, 2012
Hi Bambi and thanks for your post.

Based on your previous questions when you asked about assessments and wondered if these could be avoided, I suspect that you (or at the very least, your agent) may have been told that the home was located within a homeowners association. While sellers frequently fail to tell their agents about the presence of an HOA (it happens more often than you know), the prelimary title report NEVER forgets the HOA's presence or recorded documents that restrict usage of the home. Our CAR purchase contracts do require that sellers make this fact known to the buyer immediately and that information about the HOA be transmitted to you, as the buyer, within a specified period of time--usually 10-12 days, so, again, your agent should have pointed these items out to you in a conversation after receipt.

As for the inspection reports and the central air conditioning, it could have been a simple mistake that the home was not outfitted with an air conditioner, so talk with your agent about the MLS listing and the lack of AC.

Finally, regarding the loan documents, you will need to consult with your loan agent on this matter. Typically, as others have already pointed out, there is a loan lock period that can and will expire after the passage of so many days. Your lender or mortgage broker should be able to clarify the terms and reason for wanting you to quickly sign the home loan papers.

I wish you good luck in the home sale. If you have any further questions, I would suggest you speak either with your agent's broker or with a qualified real estate attorney. Good luck!

Grace Morioka
Area Pro Realty-Peoples Choice
0 votes Thank Flag Link Fri Mar 2, 2012
Homebuyer best to check with your lender to see if they will penalize you if you do not close on time. Also see what they will charge you to extend your rate expiration. If you really want the property, try and work things out. If you are wanting to terminate your agreement make that certain items that you relied on are not accurate or included.

Hope it all works out for you?
0 votes Thank Flag Link Fri Mar 2, 2012
You need to ask your buyer agent these questions and review your contract. Sometimes flyers only list some features, but not all facts. Also, it could have had a portable A/C unit. The flyers are marketing products, which is not the same as the actual disclosures (TDS & SSC) sellers fill out. With bank-owned homes, sometimes the listing agents are not given all facts either. Finding out these things is part of the contingency process. Best wishes.
0 votes Thank Flag Link Fri Mar 2, 2012
Are you at the tail end of closing on the property? Have you removed the physical inspection contingency? Did you get any disclosure stating either there was or was not an HOA fee? Also any disclosure that there was or was not an A/C unit. All those things are important. Are these things that materially affect your interest in the property? Ask your agent for assistance if these were not disclosured.

Pat Chadwell, broker
Realty World - Residential Specialists
408-927-6565 x 11

0 votes Thank Flag Link Fri Mar 2, 2012
You have a few things going on here.

1) You have locked in your interest on your loan for a certain period so once that expires you loose that rate or you may need to pay something to keep that interest rate.

2) Part of purchasing a home you have contingencies which is for you to discover conditions on the home which may affect your decision to purchase. If your decision was based on no HOA fee and an a/c unit you can ask for an a/c to be installed. You can't ask for HOA fees to be removed. Also, your loan will take into account the HOA fee as well.

3) The sellers request to stay in the house, was that negotiated in the contract or is this a new request?

My question to you is do you still want the house? If no have you removed your contingencies? If no then talk with your agent about your options. If you still want the house, then talk with your agent about what are your options.

All the best to you.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Fri Mar 2, 2012
Hi Xxxbambixxx, Without the contract no one here can answer your question. If you have already removed your appraisal, loan and property condition contingencies you could very well be in a ;pickle;.

This is something that is easily addressed within the contingency terms PRIOR to removing them. If the above is true and If you think you can renegotiate at this late point then, I would encourage you to do so ASAP.

Good Luck

0 votes Thank Flag Link Fri Mar 2, 2012
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