Legal Question in Real Estate Law in California

Outstanding HOA fees

Currently in escrow with buying a condo foreclosure in the state of California. Basically got down to the 11th hour and it was brought to my attention that there were outstanding HOA fees from the previous owner of around $6800. In order to close the deal i have been told that it is the buyers responsiblity to pay these fees that seem to me to be between the HOA and previous owner. I read a post on this board about a situation like this but it seemed that their deal was already closed when the fees popped up out of nowhere. I am wondering because i am still in escrow if things change with this. The reponse i am getting from the parties i am working with on this deal is that ''you are getting this at a discounted price so this is part of getting that''. This doesnt add up to me. Thanks in advance for help from anyone.


Asked on 2/22/07, 5:37 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Outstanding HOA fees

Civil Code Section 1367 clearly states that assessments are a debt of the owner at the time the assessment is levied. If the lender foreclosed, the lender can only be held responsible for HOA dues arising after it became the owner of record. If the HOA recorded a lien for the assessments by the prior owner, the lien would have been wiped out by the bank's foreclosure.

If the HOA had a lien that somehow survived the foreclosure sale, paying the lien may be the only way to get clear title. However, it sounds to me like the HOA is trying to push you around to get money that you shouldn't have to pay.

Whether or not you are getting a good deal is irrelevant. You have a contract with the bank to pay a certain price for the condo and the HOA has no business imposing obligations that you do not legally owe.

Read more
Answered on 2/22/07, 6:03 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in California