Legal Question in Real Estate Law in Pennsylvania
Unpaid condo association fee
I bought a condo in Jan. 2008. About 2 months ago, the management company informed me that the owner I bought the condo from had an unpaid condo fee balance. This is the first I heard of this as we were informed at the time we purchased the unit that all fees were up to date. I am now in the process of selling the unit to a new buyer, but the condo association is insisting I pay the past due balance from the previous owner. They have informed the title company to collect this balance from my proceeds at settlement. In my view, since they made the mistake at the time I purchased the condo, this should not be my responsibility. I have tried to get my title insurance company to pay for it under the argument that I did not receive a title free of liens, but they have refused saying the association should have brought this up when I purchased the unit. Am I obligated to clear this debt before I can sell the condo? Are they allowed to essentially place a lien on the property today for a balance from a previous owner that they did not disclose when I bought the property?
2 Answers from Attorneys
Re: Unpaid condo association fee
How were you assured that your seller had paid all condo fees? The only way to be sure is to receive what's called a "3407" certificate issued by the Condo Association. That certificate discloses the status of monthly condo fees, assessments, and any other charges payable by the unit owner.
Did your title insurance company have the same requirement?
If you did not receive such a certificate at your settlement, there could be outstanding unpaid fees, as you have discovered.
You would be required to ask the association for the same certificate to provide to your buyer and its title insurance company.
It is not the responsibility of the association to step forward on its own when there is a sale. Generally, unless there is a request for the certificate by the seller, the association has no way of knowing that a sale will take place.
This response is not legal advice, since I do not have all of the information that would be required, and I do not have a representation agreement with you.
* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.
* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.
Re: Unpaid condo association fee
We really need to talk this out...feel free to write back or call me direct.
There are arguments on all sides about who is responsible, and only through discussion can I give accurate advice.
Mike
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