“I had reached out to the HOA to make sure the seller, Joe, was in good standing”, Deanna Mellas recounted. “I was surprised when the person at the HOA said, ‘I’m not sure why Joe is trying to sell his condo because we foreclosed on him’.”
What was going on!?”
Deanna continued, “Joe thought that because he was selling his condo, that he didn’t have to pay his HOA fees because ‘it would be sorted out in the sale’. After explaining to him that it wasn’t quite how it worked, and that his lack of payment had almost cost him the ability to sell his condo, we were able to get back on track. A call to the HOA’s attorney, and fees paid, ensured the sale could proceed without further issue.”
Avoid a Horror Story Closing
Unfortunately, many transactions are haunted by HOAs, but did you know there are other ghosts potentially hiding in your transaction? Ask these questions during your next transaction:
- Is there an HOA?
- Are there any delinquencies in HOA payment?
- Is there a special assessment coming up for the HOA?
- Is the property currently vested in a trust?
- Will the new buyer/borrower vest in a trust?
- Will there be a new entity formed (e.g. partnership, corporation, trust) in the sale of this property?
- Are there solar liens or solar panels?
- Are there HERO programs?
- Are there special assessments in the tax bill?
Don’t let a horror story ruin your closing, start working with your local Doma office today.