What is the best way to handle a pending HOA assessment on a sale of a condo?
May 1, 2010 by
Filed under condos for sale
I’m selling my condo and there is a pending assessment for repainting exterior of condos; there is no amount established yet just talks…should I tell buyer? What is best way to ensure deal goes thru?
By law, at least in my state, you are REQUIRED to tell the buyer.
Most likely, your buyer’s attorney will find out about it prior to closing. Once buyer knows about it, you will probably have to find out from the HOA what the assessment will be and negotiate with the buyer who pays what. Logically, the assessment would be due as of a certain date and the owner of record on that date would be responsible for payment. Obviously, if buyer knows about it (which again I think they will) they may be less inclined to purchase. I think you run the risk if you purposely neglect to disclose it to the buyer that you could still be held resonsble for a part or all of the assessment even after closing. Good luck!
If you are proven to have detrimental information concerning the sale and do not disclose it to the buyer, you can be financially sanctioned even months after the sale.
You are required to disclose the pending assessment in most cases. A deal can go through most easily by being upfront with the potential buyer. This could be a negotiating factor for the contract, but painting is normally considered as basic upkeep. A fairly close estimate should be easy to determine by talking with the HOA.