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  #1  
Old 07-06-2005, 03:16 PM
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Join Date: Jul 2005
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Previous owner's past due Association fees


What is the name of your state? PA

My business partner and I recently bought a foreclosed townhouse in a USDA Marshall sale. When the sale went through we received a clear title showing no liens, they had all been paid by the USDA. The president of the association is now claiming that we owe the past due association fees from the previous owners, who did't pay their fees for over five years. We have paid for the three months that we have now owned the property.The association had plenty of time to file for payment and didn't, there is a thirty day period after the initial sale for groups to file for payment.
Do we owe the fee or is the association out of luck? We are willing to pay a portion of the past due amount to be good neighbors, but I don't want to pay the whole $2,500.
Thanks
  #2  
Old 07-07-2005, 10:24 AM
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Join Date: May 2000
Location: Catatonic State
Posts: 75,781
Quote:
Originally Posted by Tralfaz3
What is the name of your state? PA

My business partner and I recently bought a foreclosed townhouse in a USDA Marshall sale. When the sale went through we received a clear title showing no liens, they had all been paid by the USDA. The president of the association is now claiming that we owe the past due association fees from the previous owners, who did't pay their fees for over five years. We have paid for the three months that we have now owned the property.The association had plenty of time to file for payment and didn't, there is a thirty day period after the initial sale for groups to file for payment.
Do we owe the fee or is the association out of luck? We are willing to pay a portion of the past due amount to be good neighbors, but I don't want to pay the whole $2,500.
Thanks

**A: post the cite from the PA law that supports the HOA position.
  #3  
Old 07-07-2005, 10:34 AM
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Join Date: Jan 2003
Posts: 19,145
I have been involved with a number of transactions involving foreclosed condos. Normally, the title report takes a general exception regarding the association fees. THe appropriate due diligence for any condo purchase is to first obtain a Condo Association letter verifying what, if anything is owed to the association. This is a closing function, whomever you hired to handle your closing paperwork should have contacted the association officer who normally provided the condo letters, and obtained a staus DIRECTLY from the HOA BEFORE closing. These don't necessarilly show up in a title search, and only get wiped out IF the association is named in the FC action.
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