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Existing Special Assessment Fee Disclosure

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mgibb101

Junior Member
What is the name of your state (only U.S. law)? Maryland

I purchased a home November 29th, 2008 in a community. I just received a letter from the developement threatening to lien my property because of an unpaid annual assessment January 1st, 2009. This was the first time I had ever heard of this company or the assessment. I called and was informed that it was supposed to be disclosed to me prior to or at settlement. The company handling the assessment fee told me to contact the title company which I did and it was pushed to the real estate company by the title company. I now have a large bill due with a few hundred dollars in late fees and interest added. What is my recourse and what should my plan of action be. The real estate company was the previous owner and had paid the assessment for 2008, so they can not claim they didn't know about it. Thank you.
 


FlyingRon

Senior Member
Depends on how it's assessed. If it is in advance for the coming year, then you owe it all and you should have paid for the remaining days of 2008. If it's in arearage, the bulk should have been paid by the seller at closing. The fact that you failed to know about it doesn't how much is owed.
 

mgibb101

Junior Member
It is called a front footage assessment. It is billed annually in November for the upcoming year. I am not in dispute that it is owed at this point. They disclosed association fees as well as state and local taxes. I suppose I should restate the question as "are there any requirements to disclose the annual fees prior to sale or at the time of settlement?"
 
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nextwife

Senior Member
was there any pro ration on the closing statement for this fee? Did you read the easement and restriction and CC&Rs docs that were part of the title report?
 

mgibb101

Junior Member
I was not given a title report. There were no listings of these fees anywhere in the documents. I accused the collection company of being scam artists because I had all the annual fees built into escrow on my mortgage and had never heard of them before.
 

nextwife

Senior Member
I was not given a title report. There were no listings of these fees anywhere in the documents. I accused the collection company of being scam artists because I had all the annual fees built into escrow on my mortgage and had never heard of them before.
You bought real estate without first reviewing the title?
 

mgibb101

Junior Member
This was my first purchase and didn't know any better... I guess I am just out of luck on this one. I "thought" everything was supposed to be disclosed. Call me ignorant.

To make matters worse, the agent was my sister-in-law....so much for family having my back. I suppose I trusted her too much.
 
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HomeGuru

Senior Member
This was my first purchase and didn't know any better... I guess I am just out of luck on this one. I "thought" everything was supposed to be disclosed. Call me ignorant.

To make matters worse, the agent was my sister-in-law....so much for family having my back. I suppose I trusted her too much.
**A: go back to the title company and start there.
 

FlyingRon

Senior Member
Again, in Maryland there's no statutory disclosure requirement. The settlement company certainly isn't responsible for other than failing to prorate the last days of the year (the direction of that payment depends on whether the assessment is in arrearage or in advance).
 

nextwife

Senior Member
**A: go back to the title company and start there.
Did she buy an owner's policy? Was the seller required to buy her an owner's policy (that's how it works in my market)? Did the title company miss the assessment?

Poster: Exactly what did your offer state about title and who chooses and pays for it?
 

HomeGuru

Senior Member
Again, in Maryland there's no statutory disclosure requirement. The settlement company certainly isn't responsible for other than failing to prorate the last days of the year (the direction of that payment depends on whether the assessment is in arrearage or in advance).
**A: so it is your opinion that there is no law in Maryland requiring a real estate agent or a property seller to disclose material facts?
 

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