Legal Question in Real Estate Law in Arizona
Homeowners association
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The management company, Rossmar & Graham, for the Los Gatos homeowners assoc. of Scottsdale,AZ informed me today that when I sell my home that the buyer or myself will be assessed five thousand dollars ($5000.00) for future use for road repairs etc. I feel they are penalizing me for selling my home. Are they legally allowed to do this??
2 Answers from Attorneys
Re: Homeowners association
What do the CC&Rs for your property say about this? I presume that the assessment is called for in those, but it may be in the board's own rules and regulations that they have established. Sometimes such an assessment at sale of home is kinder than a cash assessment now. Will you owe the assessment anyway? Have you reviewed the documentation on your association for this issue? Have you asked for reference in the CC&Rs or other place for their authority to do so? Have you received an explanation from the Board or its members?
I think you need to do some more homework. You are welcome to post up another question when we have more facts before us and you have done some research.
Good luck,
James D. Jenkins
Re: Homeowners association
Without researching the relevant documents, your CC&Rs, HOA rules, etc., a determination cannot be made to answer your question. More important, perhaps, is to determine whether you have already been assessed the $5,000, or the assessment arises upon notice of sale of the property, and then, how does the escrow determine if this is an item to be paid by the seller or buyer or prorated. It is common practice that any assessments against the property at the date of sale are paid by the seller.
As a practical matter, when you join a homeowners association, you give up many of your rights. So, as long as the rules provide for the HOA to make assessments and that the assessment was properly done, according to the rules, the assessment will be enforceable. The HOA cannot penalize you personally with this assessment, it must apply to all homeowners. The association must provide for road maintenance and it is common to collect from the members in advance of incurring the expense.