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Claim of Interest and land contract sale-Mich

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fairoaks

Junior Member
Michigan - I represent a homeowners association with annual dues. Some members are delinquent and sometimes the properties are in foreclosure as well. The board plans to file Claim of Interest against any properties with delinquent annual dues. I know that it will show up in a Title search and be satisfied, but will it also be binding in a sale by land contract? Would the buyer of a property owe the dues he didn't search for, after his purchase?
 
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latigo

Senior Member
Michigan - I represent a homeowners association with annual dues. Some members are delinquent and sometimes the properties are in foreclosure as well. The board plans to file Claim of Interest against any properties with delinquent annual dues. I know that it will show up in a Title search and be satisfied, but will it also be binding in a sale by land contract? Would the buyer of a property owe the dues he didn't search for, after his purchase?
In what capacity do you "represent" the HOA? Obviously not the association's attorney. Your question is much too naïve to admit to that.

If you think it is possible for a seller of land to pass clear title simply because the sale is through the medium of a land sale contract, then the HOA is being poorly represented.
 

Ohiogal

Queen Bee
Michigan - I represent a homeowners association with annual dues. Some members are delinquent and sometimes the properties are in foreclosure as well. The board plans to file Claim of Interest against any properties with delinquent annual dues. I know that it will show up in a Title search and be satisfied, but will it also be binding in a sale by land contract? Would the buyer of a property owe the dues he didn't search for, after his purchase?
And to add to what Latigo stated, YOU really want to say you REPRESENT them? If not an attorney you can find yourself in major hot water for UPL.
 

LdiJ

Senior Member
Michigan - I represent a homeowners association with annual dues. Some members are delinquent and sometimes the properties are in foreclosure as well. The board plans to file Claim of Interest against any properties with delinquent annual dues. I know that it will show up in a Title search and be satisfied, but will it also be binding in a sale by land contract? Would the buyer of a property owe the dues he didn't search for, after his purchase?
Its also naïve to assume that the delinquent annual dues will be satisfied through a sale. They could be, but also could not be...and no, the buyer of a property would not be responsible for the debts of someone else...and the whole "didn't search for" bit...you need a proper lien to have a proper lien.

If you have a proper lien you could perhaps stop a sale from happening by refusing to release your lien if your organization doesn't get paid, but that would be counterproductive. If the property is sold then you will have a new owner who will be paying the HOA dues on an ongoing basis. If you stop a sale then no new owner, so still a unit with no fees being paid.
 

fairoaks

Junior Member
Advice?

Ohiogal and latigo, do you really call your sarcasm advice?
LdiJ, thank you for your respectful answer.
I am apparently naive, because I am a member of the board of the HOA and thought this was a forum for legal advice. Please forgive my use of the proprietary word "represent". Not being an attorney, I didn't know only attorneys can "represent" a group. Thanks, but I see now I'd rather pay the lawyer from now on, with those dues that only some of the members actually pay. If anyone asks, my advice would be to steer clear of legal advice forums, they aren't worth the time.
 

Ohiogal

Queen Bee
Ohiogal and latigo, do you really call your sarcasm advice?
LdiJ, thank you for your respectful answer.
I am apparently naive, because I am a member of the board of the HOA and thought this was a forum for legal advice. Please forgive my use of the proprietary word "represent". Not being an attorney, I didn't know only attorneys can "represent" a group. Thanks, but I see now I'd rather pay the lawyer from now on, with those dues that only some of the members actually pay. If anyone asks, my advice would be to steer clear of legal advice forums, they aren't worth the time.
Wasn't sarcastic at all. LEGALLY you cannot represent anyone unless YOU want to break the law. And the HOA as a GROUP has to vote on hiring an attorney in accordance with sunshine laws. YOU have no right to unilaterally hire counsel on behalf of the board. You got legal advice. The fact that you don't like it, not our problem. If you continue in your way, expect to be kicked off the HOA board and possibly sued yourself.
 

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