Termite and sale of condo

[cap]

What is the name of your state (only U.S. law)? California
My condo’s HOA consist of 4 units. The HOA was almost nonexistent for almost three years. The woman that ran the Associate died three years ago, she was in unit 3. Unit 3 sat empty for a year and a half before the family put it up for sale. The new owners purchased it about a year ago. Unit 4 was foreclosed on and sat empty for over a year. New owners have been there for a month. I own unit 2. I have been acting as manager of the complex, by default, because none of the other condo owners wanted to.

One of the units (unit 1) is connected to one other unit (unit 2). Unit 1 has a termite infestation problem, for several days, two, to three times a year the termites swarm out of Unit 1 by the thousands and land on the other units. Unit 1 also has extreme wood damage from the termites. Unit 2 did extensive remodeling 3 years ago, the unit was gutted and every beam and 2x4 that had any termite damage was replace except those directly attached to the unit 1. The 2x4’s and beams that could not be removed were spot treated.

The HOA informed Unit 1 that both units had to be tented and that unit 1 also had to repair the termite damage. For three years Unit 2 (me) has tried to coordinate the tenting with Unit 1. Unit 1 has used every excuse to put off the tenting. Unit 1 is now up for sale, as is. Because the HOA has been in a state of flux for almost 3 years nothing was informed. The two new owners, and myself want to protect our investment and we are ready to enforce the the CC&R’s.

Our HOA CC&R’s states “Each Unit Owner is responsible for the pest control of their Unit, this includes termites.” It also states that “If Unit Owner fails to fully maintain their unit, the Association shall assign a Special Assessment to the individual Unit Owner to effect needed maintenance and repairs.


My questions are:

1. Can our HOA require unit 1 be tented for termites and the repair work completed before the unit is sold?

2. Can unit 1 close escrow without the HOA signing off on it?

3. Can the HOA prevent a condo owner from selling their condo "as is"?

[HomeGuru]

Originally Posted by cap

What is the name of your state (only U.S. law)? California
My condo’s HOA consist of 4 units. The HOA was almost nonexistent for almost three years. The woman that ran the Associate died three years ago, she was in unit 3. Unit 3 sat empty for a year and a half before the family put it up for sale. The new owners purchased it about a year ago. Unit 4 was foreclosed on and sat empty for over a year. New owners have been there for a month. I own unit 2. I have been acting as manager of the complex, by default, because none of the other condo owners wanted to.

One of the units (unit 1) is connected to one other unit (unit 2). Unit 1 has a termite infestation problem, for several days, two, to three times a year the termites swarm out of Unit 1 by the thousands and land on the other units. Unit 1 also has extreme wood damage from the termites. Unit 2 did extensive remodeling 3 years ago, the unit was gutted and every beam and 2x4 that had any termite damage was replace except those directly attached to the unit 1. The 2x4’s and beams that could not be removed were spot treated.

The HOA informed Unit 1 that both units had to be tented and that unit 1 also had to repair the termite damage. For three years Unit 2 (me) has tried to coordinate the tenting with Unit 1. Unit 1 has used every excuse to put off the tenting. Unit 1 is now up for sale, as is. Because the HOA has been in a state of flux for almost 3 years nothing was informed. The two new owners, and myself want to protect our investment and we are ready to enforce the the CC&R’s.

Our HOA CC&R’s states “Each Unit Owner is responsible for the pest control of their Unit, this includes termites.” It also states that “If Unit Owner fails to fully maintain their unit, the Association shall assign a Special Assessment to the individual Unit Owner to effect needed maintenance and repairs.


My questions are:

1. Can our HOA require unit 1 be tented for termites and the repair work completed before the unit is sold?


**A: the answer is yes in general and is not contingent on the sale of a unit.


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2. Can unit 1 close escrow without the HOA signing off on it?


**A: yes, if the lender approves.


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3. Can the HOA prevent a condo owner from selling their condo "as is"?

**A: yes, in some cases.

[cap]

Thank you HomeGuru, I am trying to educate myself on how to correctly manage the HOA and I grateful for the help you have given me. I would very much appreciate any advise you can offer on how to handle these issues.

I am very concerned about the structural damage caused by the termites and, how this effects the integrity of both units as a whole.

I was told by one escrow company that I called, that the seller could put it in their sales contract that the buyer would take care of the tenting and needed repair work.

1. Is this true? If it is true, are there any steps the HOA can take to prevent that scenario?

2. What steps does the HOA need to take to get Unit 1 to get their condo tented and the needed repairs done?


When I asked if the HOA can require unit 1 to tent for termites and do the needed repair work, you said “yes in general.”

3. What would the “in general” exception be?


Please bear with me If I misunderstood your answers, but when you said “not contingent on the sale of the unit.”

4. Does that mean the unit can be sold without tenting and doing the needed repairs on the unit?


If the unit can be sold without tenting and doing the needed repairs my question is;

5. Are there any steps the HOA can take to prevent the unit from being sold if the tenting and needed repairs aren’t done?


You said that unit 1 can close escrow without the HOA signing off on it, if the lender approves.

6. How likely is that to happen?

7. Can the unit be sold if there are unpaid special assessments?

8. Does the lender have to check with the HOA regarding unpaid special assessments on the unit?


You said that in some cases the HOA can prevent a condo owner from selling “as is”.

9. Can you give me any examples of what that might be?

10. What steps can the HOA take to prevent an owner from selling ‘as is’.


I don’t know if this is reverent or not but the room mate of the owner of unit 1 is a loan officer for a small mortgage company. I got a call this morning from that same mortgage company saying they were representing the buy. They wanted to verify the monthly dues, and they also wanted to know if all the units are owner occupied.