Home Selling in Reseda>Question Details

Diana Anders…, Other/Just Looking in Reseda, CA

Hello, I'm president of a homeowner association in California and we have someone going through a divorce and

Asked by Diana Anderson, Reseda, CA Mon Aug 4, 2008

the judge has ordered their home to be put on the market. They have not paid their HOA dues in 3 months. Is the new owner liable for the late dues?

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11
Atty contacted - he said to file a lawsuit against the HO. At $1,500 per lawsuit and 10+ HO to file against you can see where we (the HOA board) currently is. Stuck!
0 votes Thank Flag Link Fri Dec 12, 2008
Hi Diane,

This is a legal question that should be refered to your HOA attorney for their review and recommendation.
0 votes Thank Flag Link Thu Nov 13, 2008
You need to lien the property. This way the lien will be paid at closing. Chances are the seller does not have the money to pay you, this way you will be paid out of proceeds at clsoing. good luck
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Nov 13, 2008
I am a HOA board member in California.
I get that the previous HO sold the home and didn't pay the HOA dues then a lien was recorded. And the new buyer of the home is NOT responsible for the past dues. The HOA should be paid out of the proceeds.

My question is what if there are no proceeds? Where does the HOA stand in line when it comes to foreclosure with the 1st and 2nd lenders?
0 votes Thank Flag Link Thu Nov 13, 2008
all the prior responses are correct. I am also a state livensed appraiser so my services may be of interest..... I handle these types of requirements along with the Attorneys involvement....
Web Reference: http://www.centuryside.com
0 votes Thank Flag Link Tue Aug 5, 2008
The HOA fees will be paid out of the proceeds of the sale by the seller. The buyer is not responsible for those dues.
0 votes Thank Flag Link Mon Aug 4, 2008
Diana this will all be handled in escrow. The escrow company has to contact the HOA for the CC&R's and any outstanding fees due. The new buyer WILL NOT be liable for the late fees because the fees were not incured by them, in CA this is the law.
0 votes Thank Flag Link Mon Aug 4, 2008
I am a Realtor and also sit on the HOA Board of Directors in our community. First refer to my previous message. However, if somehow the property is sold without the HOA fees being paid, then the new owner should be liable for the past due amount. The owner's title insurance could actually be the one to pay because the closing agent should have caught this error and made the dues payable at closing.

Do you have a procedure in your state whereby the HOA is asked to provide a statement when a home is sold? In FL we have an addendum that is required for homes subject to HOA fees or condo fees because those fees must be disclosed to a potential buyer. Then the closing agent is also alerted and requests a statement as I explained earlier.
0 votes Thank Flag Link Mon Aug 4, 2008
Not at all. They are not responsible for the late fees. Everything will be worked out in Escrow.
0 votes Thank Flag Link Mon Aug 4, 2008
The HOA fees will be paid at closing whether by the seller from the proceeds of the sale or the buyer in some cases. Hopefully there is a Realtor listing the property for sale. You may want to contact that agent to provide the contact information for the HOA for his/her convenience to request the estoppel letter in preparation for closing. The title company or attorney who is selected as the closing agent will research outstanding liens on the property prior to issuing a title insurance policy. They will request a homeowner settlement statement from the HOA at that time. In Florida, the HOA fees take priority even above the mortgage. Most mortgages require that a homeowner pay HOA maintenance fees as a condition of the mortgage. If this owner is behind in payment, you may want to go on record by having your attorney write a letter to the owner with a copy to the Realtor. You might also consider filing a lien on the property, but that is more expensive to process. An HOA could even force the sale of the property with a lien although this is an extreme remedy and the legal fees may not warrant this.
0 votes Thank Flag Link Mon Aug 4, 2008
Hi Diana,
If your association has a lien on the property (very common) for past due HOA dues then the amounts will have to be paid before title transfers to a new owner. If not, I would say that the new owner is not liable for the late dues.
Good luck, Walter
Web Reference: http://ocnorth.com
0 votes Thank Flag Link Mon Aug 4, 2008
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