Dear Michael: I own a condominium and we have monthly dues in order to keep the financials current. However, quite a few units are in default and fail to pay their HOA dues. What can we do about this? I assume these same units are not in mortgage default.
Answer: The 1st trust deed is in favor of the lender. The lender s not in a position to place a lien on the property if a homeowner does not pay his/her HOD (homeowner association dues). There are numerous expenses that need to be paid in order to operate the HOA. Paying your HOD is a accountability that every condo-owner should take seriously. The HOA can place a lien on the units that are delinquent. The lien can also serve as a warning in order to have the homeowners become current. When the owner decides to sell or refinance, then the HOA will be able to collect the outstanding balance plus all late fees and penalties that were incurred. If the owner refuses to pay the outstanding amount, then he/she will not be able to close escrow. Please contact your management CO. as they are the ones who expedite the HOA liens through their attorneys. If you’re HOA does not operate with a management CO., then you can contact an attorney who specializes in HOA litigations.
Dear Michael: I signed a listing agreement, but I am now having second thoughts about selling. How do I cancel my listing? And will it cost me anything?
Answer: Since your cooperation is required to sell the house, most agents will let the seller cancel the listing. The listing agents only hope is that when you do later decide to sell your home, you will contact them. The “cancelation agreement” states that you cannot sell the home without your agent during the original period of the listing. So, if you attempt to put it back on the market during the contracted listing period using another agent, your original agent will attempt to enforce his/her contract and collect his/her commission. In all fairness if you’re listing agent performed his/her duties diligently, he/she should be chosen to re-list your home when you decide to put it back on the market.
Dear Michael: I am a buyer who has entered into a contract to purchase a house. Unfortunately, the three owners are having a “family feud” and cannot agree on anything. The sale of the house closes in two weeks and the lock-in rate on my loan is up in a few days. What can I do?
Answer: You may have to move in with a friend or family until the issue is resolved. There are always risks involved when buying real estate. Moving plans often have to be altered. No one can guarantee a sale will close on an exact day. Situations often come up unexpectedly. Fortunately, mortgage rates are still low since you locked in your interest rate. Most lenders will extend the lock (once it expires) at the current rate you originally locked in the loan. So most likely, you will not be hurting your interest rate because of the delay. In short, you’re pretty much stuck and you have to hope the sellers can work out their problems quickly or you can opt to cancel the purchase. Please consult with a real estate attorney, you may be able to seek damages.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com
