Legal Question in Real Estate Law in California

HOA Assessments - I am considering purchasing a condo property that is Bank Owned. It appears the prior owner was delinquent on HOA dues. It does not appear the HOA has filed a lien. However, I have reviewed the minutes of the HOA for the last 6 months and there is vote to place liens on various units of which this is one of them. I don't see where they have done that yet. Can they still do that after I buy in?

What do I do to make sure this is handled in escrow prior to close, so I am not liable or have a post escrow lien placed on my property?


Asked on 10/16/09, 8:25 pm

1 Answer from Attorneys

George Shers Law Offices of Georges H. Shers

You need to review the CC&R's, but would anticipate that they could place a lien on the unit whenever they want [along with late fees, collection charges, etc.] I am not sure if the obligation runs with the proprety [any buyer assumes the fees] or the then owner [have to go against the assets of then owner]; likely the former. The lender should have assumed the debt when they foreclosed as the HOA normally makes it lien superior to any other secured debt on the property [which implies it runs with the property]. You need to check that the lender has or will take care of the lien or potential lien; the title search may not show its correct status. Find out from the condo association what other charges it imposes, such as a refunabel lobby key charge, move in fee, etc. It need to be sure the socumetns show the lender ils transferring something entirely free of liens or possible HOA liens. Your relator should be helping you but I would not trust most of them.

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Answered on 10/16/09, 11:42 pm


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