Special Assessment Disclosure

[j-dawg44]

I live in DE. I closed on my condo on 4/28. On 5/12, I recieved a notice in the mail from the Board informing me of an impending special assessment for about $8500, that would be due sometime toward the end of the summer. After speaking with the management company, I found out that we have a website that allows us to check the monthly association meeting minutes. Upon reviewing the minutes, the assessment had been mentioned dating back to September 2005. No specific amounts were finalized, but numbers of between 1 million dollars and 2 million dollars total were kicked around. Also June had been mentioned as a time when the bids were expected to be finalized.

At the time of my closing, I recieved a letter from the association stating that there was no assessments due, which was technically true. The assessment was not offically approved by the Board until the end of May. On the seller's disclosure, the seller of my new property checked "no" to "Have you recieved notice of any new or proposed increases in fees, dues, assessments or bonds?" The seller did not recieve anything in the mail informing him of the assessment, however, as a condo owner/association member, he did have access to the meeting minutes.

I am wondering if I have any legal recourse against him. We both signed a paper stating that we would go through an independent BBB arbitrator for any disputes under $10,000, so that would be my course of action. Any help would be appreciated. ThanksWhat is the name of your state?

 

[Mysfyt]

When I bought my condo in upstate NY, there were no special assessments and the common fees were very low. Within a year, we had a huge increase in common fees and within 2 years we had a special assessment that added an additional monthly payment to my bill for the next 6 years!

When you buy a condo, you take such a risk. There are always going to be assessments. Trucking in water during droughts, roof repairs, roadwork, increases in power costs, etc. It's one of the facts of condo ownership. No fees are set in stone because sh*t happens.

To ask you for $8500 within so many months... I don't know if that's legal... what happens if you can't afford it? Usually condo property managers and board members will work out a FAIR payment plan so as not to cause a serious financial hardship for owners. It should be spanned over MANY months or years as a smaller monthly bill. You should check with a lawyer about the legality of requesting that large of a sum in such a small amount of time. You may be able to negotiate smaller payments without fines or interest.

As far as going after the guy who sold the condo to you... whether he saw the meeting minutes or not, he has no control over assessments. Nor could he see into the future and tell you when you'd have to pay one. I doubt you'd have a leg to stand on with that. No one would ever be able to sell their condos if they were held responsible for cost increases after the fact.

 

[j-dawg44]

Thank you for the reply. I understand what you are saying, but I think you missed the point a little bit. The assessment had been talked about for several months, while he was still a resident, so it is definitely not after the fact.

Of course he has no control over the assessment, but he has an obligation to disclose it. Would you pay the same amount for a condo if you knew an $8500 special assessment was coming up? He wouldn't have to see into the future... the near future was already spelled out in the meeting minutes.

What if he had gotten a letter from the association about the upcoming assessment? Then he would have had to disclose it, right? I guess I'm just trying to find out where the legal line is drawn. What concerns me most is the wording in the seller's disclosure. It says "Have you received notice..." I don't know if having access to the meeting minutes constitutes "receiving notice".

 

[PghREA]

If the seller knew about an impending special assessment, it is his responsibility to disclose this information to the buyer. Go for arbitration!

 

[Shel77]

We just got done dealing with one of our homeowners over the exact same issue. We began talking about a improvemant in early Jan and discussed until late May off and on finilezed and voted June 1st. Informed homeowners of assessment that would be due in September on July 2nd and sure enough a new homeowner had just moved in and was ticked that he was uninformed by the seller of the up comming assessment however the house was closed on June twenty something and the previous homeowner never attended the BOD meetings nor requested any meeting minutes therfore was unaware and did not have to disclose this. I know the buyer attemped to sue and did not win in court. As to your "recieved notice" issue unless you can prove documents reguarding the assessment were mailed directly to the seller you can not prove he "recieved notice" he is in no way obligated to review meeting minutes online nor request them. you could have requested them however as they are public doc's and I bet you will request them before ever buying into an hoa or condo assoc. again.

 

[j-dawg44]

Not what I wanted to hear, Shel, but I do appreciate it. That's exactly what I was afraid of. And you're right, I will definitely look at meeting minutes from now on.

It's just bad luck for me. These condos have been around for 18 years, the only other assessment they've had was for $300/unit and two weeks after closing I get that letter.

 

[Shel77]

You can ask the board if the seller ever attending a bod meeting which this assessment was discussed. Or if a copy of the minutes was ever requested by the seller. The should keep records of who attended as well as any requests made. If you can show either were done you may have a case but you again must prove that he "had knowledge" not just could have had knowledge if he would have inquired.

 

[DP1954]

Similar situation

I just bought a condo on Monday (july 31) in Florida. On Tuesday my neighbors informed me about a special assessment of @ $5,000. There have already been 3 previous announcments. I called my real estate agent who was also the owner and he claimed having no knowledge and wanted to see the letter. Another letter was sent out on Tuesday which I did not receive and am assuming he did. A neighbor read me the contents which stated that the full amount would be due in several weeks. I do not have $5000. I am gathering from the information here that I am out of luck?