Dear Michael: I own a condominium, and we of course have monthly dues in order to keep the financials alive. However, quite a few units are in default and fail to pay their HOA dues, and for some years. What can we do about this? I assume their units are not in mortgage default.
Answer: Unfortunately the first trust deed (lender) cannot and will not place a lien on the property if a homeowner does not pay his/her HOD (homeowner association dues). There are many expenses that need to be paid in order to operate an HOA. Paying you’re HOD is a responsibility that every condo-owner should take seriously. The HOA can place a lien on the units that are delinquent. The lien can serve as a great tactic in order to have the delinquent homeowners pay their HOD. When the delinquent owner decides to sell or refinance, then the HOA will be able to collect the outstanding balance plus all fees that were incurred by the close of escrow. 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 lien trough their attorneys. If you’re HOA does not operate with a management CO. then contact an attorney directly 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 may have declined 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 realtor or real estate attorney if cancelling is your option.
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