If a Paid Assessment Letter was issued showing 0 balance, can the assoc. later claim I owe 6 months back assessments for a condo bought a foreclosure?

Asked by Jason, Chicago, IL Mon Jul 29, 2013

I bought a condo at foreclosure in chicago. I assumed I would have to pay (or negotiate) the 6 months unpaid assessments but was issued a paid assessment letter stating nothing was owed. I even called the management company to double check. The PAL was used at closing but now the association claims I owe the 6 months back assessments and wants to forcible enter and rent my unit to recoup the money. Can they do that? Shouldn't they be bound by the PAL even if they made a mistake?

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Evelyn S. Fred’s answer
Evelyn S. Fr…, Agent, Chicago, IL
Tue Jul 30, 2013
Hi Jason,

Start with the title company and simultaneously contact the attorney that handled the closing.

Both parties have a responsibility/liability in this, doesn't mean you're off the hook but at the very least you're not alone and should receive proper guidance.

Good luck!
0 votes
Milesesq, Home Buyer, Chicago, IL
Mon Apr 17, 2017
I have a similar question. I sold my cooperative apartment and the Coop issued a Paid Assessment letter. Two months later the Coop board stated that the managemnt company had made an error and asked me to pay for a check that was returned prior to the PAL being prepared. Do I have to pay it?
0 votes
I would contact a real estate attorney to answer your question. I'm on the Board of my co-op in NY and I would say yes you do need to pay it. However, I'm not familiar with co-op Boards in Chicago.
Flag Mon Apr 17, 2017
Manuel Brown, Agent, Chicago, IL
Tue Jul 30, 2013
Jason,

If when you closed you had a paid assessment letter you need to go back and contact your closing attorney for he or she to set this right. The Illinois Condo Act allows only for 6 months of past due assessments by the buyer.

There is no room to go over all the options the Condo Act provides but let's just say most association go about it the wrong way.
0 votes
Jeff Nobleza, Agent, Chicago, IL
Tue Jul 30, 2013
A great lawyer for this sort of issue is Erik Miles at 312 854 8092 and Miles@LawFirmMiles.com

Depending on the amount of the assessments though, it may be just cheaper and less hassle if you just pay the 6 months in assessments.
0 votes
Matt Laricy, Agent, Chicago, IL
Tue Jul 30, 2013
The answer should be no. I would speak to your attorney.
0 votes
Philip Sencer, Agent, Chicago, IL
Tue Jul 30, 2013
That is a legal issue so just ask your attorney who did the closing.
0 votes
Sohail Salah…, Agent, Chicago, IL
Tue Jul 30, 2013
Jason,

Contact your attorney who did the closing for you.



Sohail A. Salahuddin | Founder and Team Leader

Innovative Property Consultants Group | Sales and Leasing

http://www.innovativepropertyconsultants.com



Jameson Sotheby’s International Realty

425 W. North Ave. | Chicago, IL 60610

O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030

"Extraordinary Service For Extraordinary Lives"
0 votes
Sohail Salah…, Agent, Chicago, IL
Tue Jul 30, 2013
Jason,

Contact your attorney who did the closing for you.



Sohail A. Salahuddin | Founder and Team Leader

Innovative Property Consultants Group | Sales and Leasing

http://www.innovativepropertyconsultants.com



Jameson Sotheby’s International Realty

425 W. North Ave. | Chicago, IL 60610

O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030

"Extraordinary Service For Extraordinary Lives"
0 votes
Bill J Delig…, Agent, Naperville, IL
Mon Jul 29, 2013
Get your attorney and Title company involved immediately.
0 votes
Pete Burke, Agent, Schaumburg, IL
Mon Jul 29, 2013
The PAL may be from the term that the bank owned the property and is correct. The 6 months is from the period prior to the bank foreclosing. Under Illinois law, the association can claim up to 6 months fees from the purchaser of the foreclosed property (YOU) if the owner prior to the bank was behind and left fees unpaid at the time of the foreclosure. Your attorney or agent representing you should have informed you of the potential liability. Get a statement from the association for the unpaid amounts from before the foreclosure. Consult your attorney then pay the money if the situation is as outlined above unless your attorney gives you some defense.
0 votes
Jacqueline S…, Agent, Chicago, IL
Mon Jul 29, 2013
The first cheap thing you can do is talk to the title company that closed. They have some liability and may give you some direction. If you closed with a lawyer, also involve them.
0 votes
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