who should pay for pending special assessments for a condo? Seller did not disclose on the condition report but condo docs document list it

Asked by Winniepooh, 53188 Sat Dec 11, 2010

so basically when i put in the offer to purchase there was no disclosure from the seller that there had indeed been active discussion of a pending special assessment of several thousand dollars for long due repairs to the condo buildings. Completed inspection, financing contingencies etc. Now when the seller finally presented the remaining condo docs for review it is clearly listed in the monthly minutes and has been documented to be in discussion over the last three months - so obviously the seller was forthcoming with the actual information when he filled out the real estate condition report. At this time I feel he should pay for the pending assessment - any advice on how to negotiate this as a special agreement or amendment to the offer to purchase

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Jen Burns, Agent, Delafield, WI
Mon Dec 13, 2010
BEST ANSWER
Dear Condo Buyer,
With out being a party in the transaction, this can be a tricky question to answer and can border on legal advice in which you must ask of an attorney. I hope you have a local REALTOR that is your buyer agent helping you with this transaction and if you are not happy with their help I would encourage you to speak to their sales manager or a a real estate attorney. That being said, in Wisconsin with every offer to purchase on a condo there is a required addendum to the sales contract possibly labeled "Addendum C" and this document spells out to you what the Condo Disclosure Materials should contain and the pertinent time frames associated with the disclosure materials. You will also see an explanation of special assessments and who pays for what in your offer to purchase. If you are still unclear about buyer or the seller obligations pertaining to special assessments I would encourage you to call a real estate attorney. Best of Luck!
0 votes
I recently purchased a condo in OC, MD and did not find out about a special assessment after settlement visiting the property manager's office. The assessment is $1MM for replacement of elevators which each owner's portion is $50K which you can term out over 10 years. None of this information was ever disclosed by the Seller or their agent. Anythoughts on this is welcome
Flag Thu Oct 31, 2013
Marge Bennett, Agent, Fort Myers, FL
Sun Dec 12, 2010
This should be covered in your contract to purchase. In Florida, the buyer has a 3 day right of recision after getting the condo docs. The seller also has to sign a disclosure with the amount of condo fees and special assessments. Ask your agent about the requirements in your state.
1 vote
Debra (Debbi…, Agent, Livingston, NJ
Sun Dec 12, 2010
In my area we use attorneys for our closings, so in this case, an attorney would definitely be stepping at this time in to handle this issue..

I agree - you should have been informed this assessment was under discussion, even if a final decision wasn't in place as yet. Our disclosure forms ask if there is any pending assessment or possibllity of one.

Has your agent reached out to the sellers? What was their response?

Obviously, this should have been negotiated when you first put in your offer - at this time, if you can't reach a mutually acceptable agreement with the seller, you will need to seek legal advice.

Are you willing to walk away if the seller oesn't agree to pay the assessment?
While "discussion" of the possibility of an assessment is in the minutes, there has been no definitive decision as yet. This may cause the stumbling block as to whether the seller must pay or not.
It all has to be negotiated.

Good luck!
1 vote
Winniepooh, Home Buyer, 53188
Sat Dec 11, 2010
typing error ...i twas supposed to read "seller was NOT forthcoming"
0 votes
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