Legal Question in Real Estate Law in Illinois
1st Time Buyer & Problems W/HOA
I purchased a townhouse almost a year ago 6/2006. At the closing the seller said there were no assessments. 10 months later, a neighbor asks me to join the HOA and refers me to the HOA Mgmt Company.
I call them & they were unaware of any sell to me. The Mgr. says that I shouldn't have been able to purchase the unit, becuz the previous owner has a debt w/ them. He also said that they have an eviction in order for my unit to the previous owner for her unpaid debt, and that I have inherited her debt.
I informed him that I did not call to argue or debate about something I had no knowledge. He asks, why I waited almost a year to contact the HOA. I replied, why they manage property and not know who sells...I was told by my realtor that title insurance should protect me. I did a search today on Cook County Circuit Court & they have been after her twice; Once in 2002, the HOA & Mgmt filed a Joint Action against her for ($1900); In 2006 another complaint was filed for the same type of case ($760).
Have I inherited her debt? Does title insurance clear me? Where would I find proof of paid title insurance on closing docs? How should I respond?
I feel so overwhelmed!!!
2 Answers from Attorneys
Re: 1st Time Buyer & Problems W/HOA
Were you represented by an attorney at closing? If so, you should contact that attorney. Ordinarily, the title insurance would insure that there were no liens; but the title insurance company would have required a "no lien" letter from the HOA. Sounds like that was not done if Mgr was not aware of sale. Was your closing at a title company? Did you have a mortgage on the new property?
Based upon your questions, you should retain an attorney ASAP. Contact your local bar association lawyer referral service and bring all of your closing docs to your first meeting with the attorney.
Re: 1st Time Buyer & Problems W/HOA
Please tell me that you hired an attorney to represent you at the closing.
My guess is that you did not want to spend the $400.00 - $500.00 an attorney would have cost you and now your in for a lot more than that.
Anyway, you need your owners title policy (not the mortgage policy) and you need the commitment that the policy was based on.
If the commitment raises an objection as to assessments and that objection was waived on the policy then the title company is on the hook for the debts prior to closing. You are liable for all subsequent debt.
Also, your contract would show wheter or not the seller was passing on the debt to you.
If not you will owe all of the debt. (at least the unit will)
Same thing with the judments, they attach to the property.
Check out the Cook County recorder of deeds website for an other liens that were filed. There may be any extra mortgage or 2 filed on there.
Did you get a survey? This could be a title problem. Were all of the taxes clear? THis could be a title Problem. Did the Seller have any other judgments against her? This could be a title problem?
This could be a big can of worms.
email me if you have any other questions.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
