One of my clients thought we were closing tomorrow. I thought the same thing. But come to find out the seller (a developer) who has 25 condos and the management association have a disagreement. The developer was converting over the apartments to condos.
At some point the developer was paying the outside lighting bill and at the same time they have become delinquent on the association dues for the 25 units they own. So now the management company for the condo association are holding up the sale of the condo my clients want to buy.
The sent a status letter for $40,000 for past due association dues for the condo my clients are buying. The condo is selling for $35,000! The $40,000 is association dues for all 19 condos. But they are trying to put the squeeze on the developer for the past due money. So now the seller/developer is going to have to take the association to court. I don't think the association is going to win and they might get some damages awarded against them.
But for now my clients have to make a decision if they want to be in limbo for a couple of months until the saga plays out. I will know in the morning what they decided. But the condo can't close until the past dues are paid because the title company won't do it.
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My Month of December quote:
~ Mark Twain”
Russ Ravary
"helping make your move easier"
your local Metro Detroit Realtor helping clients like you sell and buy homes through out the entire Metro Detroit suburbs. I love showing and selling Oakland County and Livingston County Lake front homes too.
I wonder why someone had not found this out earlier, somewhere during the "due Diligence" period the ball got dropped. Probably the HOA just wanted to really stick it to the Developer, and your poor client is stuck in the middle,
Good luck, and best wishes for a successful closing, soon.
Hi Russ, I know I am off topic but I just wanted to stop by and say KUDOS! on Day 3 of your 30 days of blogging. Keep it up!
Unfortunately in Michigan, title companies do not ask for the HOA status letter until the last minute. They do that to make sure they have all the bills in right before closing. I too think the HOA is trying to stick it to the developer. They may loosen up when a court case is put before them.
Russ: The legal basis for attaching the HOA liens to one closing seems suspect. What a mess.