Legal Question in Real Estate Law in California
My brother is moving out of his condo (which he was buying, not renting). Escrow closes this April 8, 2010, and the office told him that he is responsible for paying April's Home Owner's Association fee of $350. Shouldn't that fee be pro-rated for 8 days only, since he has to be moved out by April 8? They told him that he was responsible for the whole month. Can that be true?
2 Answers from Attorneys
Yes, but he should get it prorated in the escrow so he gets a credit from the buyers.
It's kind of a "both of you are right" situation. The owner on the due date is responsible for the whole payment, and correctly so, form the standpoint of the HOA. However, as between the buyer and the seller, the buyer (in the usual contract, anyway) must reimburse the seller through an adjustment in escrow. The same kind of prorations are made in escrow for property taxes, with the county tax collector expecting payment of the full amount from the owner on the assessment date and the prorations being a private matter between buyer and seller.
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