HOA trying to hold us responsible title company mistakes months later

[jdg401]

What is the name of your state (only U.S. law)? Colorado

Bought a condo Nov 2013. Settlement statement clearly stated "Nov-Dec HOA dues paid" and an amount. Made it through closing no problem, with the seller present. We were told at closing that our first mortgage and dues payment would be due Jan 2014.

Get a demand letter in May 2014 for unpaid Dec 2013 dues. We provide cancelled checks showing we've made all the payments we thought we were responsible for, and a copy of the settlement statement. Months and months go by until I get a response back from the manager stating that it must've been an error, the dues aren't current, and that we owe them. I don't think we do, do we? Can an HOA come back at the tenant for this kind of (apparent) mistake made during closing? We made good faith efforts, and I feel like we now shouldn't have to go back and fix the title company's mistake. Their mistake, they can pay it. Regardless the fact that we were told when our first payment would be due also in front of the seller, our agent, and our mortgage originator.

 

[quincy]

What is the name of your state (only U.S. law)? Colorado

Bought a condo Nov 2013. Settlement statement clearly stated "Nov-Dec HOA dues paid" and an amount. Made it through closing no problem, with the seller present. We were told at closing that our first mortgage and dues payment would be due Jan 2014.

Get a demand letter in May 2014 for unpaid Dec 2013 dues. We provide cancelled checks showing we've made all the payments we thought we were responsible for, and a copy of the settlement statement. Months and months go by until I get a response back from the manager stating that it must've been an error, the dues aren't current, and that we owe them. I don't think we do, do we? Can an HOA come back at the tenant for this kind of (apparent) mistake made during closing? We made good faith efforts, and I feel like we now shouldn't have to go back and fix the title company's mistake. Their mistake, they can pay it. Regardless the fact that we were told when our first payment would be due also in front of the seller, our agent, and our mortgage originator.

Nowhere in your settlement documents does it show a Dec-Jan 2013-2014 HOA payment made, right? If you did not make a Dec-Jan payment, you apparently would owe for that.

Do you have it in writing that your first mortgage and dues payment would be in January 2014?

 

[jdg401]

Nowhere in your settlement documents does it show a Dec-Jan 2013-2014 HOA payment made, right? If you did not make a Dec-Jan payment, you apparently would owe for that.

Do you have it in writing that your first mortgage and dues payment would be in January 2014?

Again, the settlement statements says "Nov-Dec 2013 HOA dues" under the column paid by seller, but apparently was incorrectly calculated.

No, of course nothing in writing. I was hoping that three witnesses would suffice though.

General question, is it commonplace for dues to begin before mortgage payments do? We correctly made our first mortgage payment Jan 2014, and are current with that company.

 

[quincy]

Again, the settlement statements says "Nov-Dec 2013 HOA dues" under the column paid by seller, but apparently was incorrectly calculated.

No, of course nothing in writing. I was hoping that three witnesses would suffice though.

General question, is it commonplace for dues to begin before mortgage payments do? We correctly made our first mortgage payment Jan 2014, and are current with that company.

Did you have occupancy at closing? If you had occupancy of the dwelling in December 2013, the Nov-Dec 2013 dues were paid, but you would be responsible for the Dec 2013-Jan 2014 dues, this even if your mortgage payment was not due until January 2014.

Your mortgage payment and its payment schedule is not tied to your HOA dues or due date, in other words.

 

[LdiJ]

Again, the settlement statements says "Nov-Dec 2013 HOA dues" under the column paid by seller, but apparently was incorrectly calculated.

No, of course nothing in writing. I was hoping that three witnesses would suffice though.

General question, is it commonplace for dues to begin before mortgage payments do? We correctly made our first mortgage payment Jan 2014, and are current with that company.

Yes, it would be common for HOA dues to begin before a mortgage payment would. Mortgage payments generally do not start until a month or two after one first occupies a home. HOA dues would begin with occupancy (or formal ownership).

 

[jdg401]

Did you have occupancy on closing? If you had occupancy of the dwelling after the Nov-Dec 2013 dues were paid, you would owe for the Dec 2013-Jan 2014 dues, even if your mortgage payment was not due until January 2014.

Your mortgage payment and its payment schedule is not tied to your HOA dues or due date, in other words.

Thanks for the replies

 

[quincy]

Thanks for the replies

You're welcome, jdg401. LdiJ and I appreciate the thanks.

If you're lucky, this will be the only dispute you experience with your HOA.

 

[JoDa]

In case anyone is checking this later on, I want to reiterate what was said. Condo fees may be due before your first mortgage payment. When I bought my first property, I closed early in the month to accommodate my move. I pre-paid that month's condo fee at closing, but didn't owe a mortgage payment for nearly 2 months (1.5 months, if we're being exact). Yet, I still owed condo fees AGAIN 3 weeks later, as I had taken ownership of the unit. In my case, I was lucky, the Board realized that I probably didn't understand that I owed dues for the next month, so one of them just knocked on my door and asked for them. Late fees waived if I could write them a check on the spot. I blushed, gave them a check, and we were good. I'm currently the treasurer of that Association, and I'd do the same with a new owner.

 

[quincy]

In case anyone is checking this later on, I want to reiterate what was said. Condo fees may be due before your first mortgage payment. When I bought my first property, I closed early in the month to accommodate my move. I pre-paid that month's condo fee at closing, but didn't owe a mortgage payment for nearly 2 months (1.5 months, if we're being exact). Yet, I still owed condo fees AGAIN 3 weeks later, as I had taken ownership of the unit. In my case, I was lucky, the Board realized that I probably didn't understand that I owed dues for the next month, so one of them just knocked on my door and asked for them. Late fees waived if I could write them a check on the spot. I blushed, gave them a check, and we were good. I'm currently the treasurer of that Association, and I'd do the same with a new owner.

It is generally not a good idea on this forum to revive an older thread to reiterate what has been said, JoDa. Those types of posts are often reported for moderator review.

That said, it is nice to see you contributing.