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HOA lawsuit

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jrou

Junior Member
Purchased a home in HOA less than a year ago that was involved in pending lawsuit and both HOA and seller neglected to disclose it, not included in estoppel letter. The HOA had knowledge of the lawsuit almost three months prior to closing; the lawsuit was filed the day after my closing. HOA now has contractual agreement with attorney placing liens on all homeowners properties due to exorbitant retainer fees. What are my rights?
 

FlyingRon

Senior Member
What makes you think there's any legal duty for the seller to disclose a lawsuit against the HOA?
What makes you think the HOA has any duty to disclose ANYTHING to you as a potential buyer.
 

PayrollHRGuy

Senior Member
At the time of your closing there was no lawsuit. There may have been a threat of a lawsuit but until the suit is filed there isn't a lawsuit.

The lein wasn't placed because of a judgment from the lawsuit. It was placed because your HOA didn't pay their legal bills.
 

Zigner

Senior Member, Non-Attorney
The lein wasn't placed because of a judgment from the lawsuit. It was placed because your HOA didn't pay their legal bills.
No - it was placed because of the retainer that had to be paid, not because there are unpaid bills. The members of the HOA must each pay their share.
 

PayrollHRGuy

Senior Member
I get it after a reread.

Yet another reason I would NEVER own property subject to an HOA.

I think that is reason #40.
 

HRZ

Senior Member
PLan A. You review with your lawyer the practical aspects of proving seller had prior knowledge of this big grey cloud over property value AND collecting damages if they failed to disclose same :
. " Notice to Seller: Florida law1 requires a seller of a home to disclose to the buyer all known facts that materially affect the value of the property being sold and that are not readily observable or known by the buyer. ". As typically found on a FI sellers disclosure .

PLan B You get a case of bottles of your favorite strong beverage ...you will need it .
 

PayrollHRGuy

Senior Member
Was the lien in place at the time of closing?

When, in relation to the closing, was the agreement between the HOA and the lawyer signed?

Can you prove the seller knew about the agreement and the subsequent lien?

And just out of pure curiosity what is the nature of the lawsuit?
 

FlyingRon

Senior Member
Even if the lawsuit had been filed at the time the disclosure was made or the property closed, it wasn't against the property or the seller. There's no obligation under the Florida law to say the HOA has issues, just that there exists an HOA and what the fees are.
 

HRZ

Senior Member
Requires digging deeper into actual language of the statute on FL disclosures


A known fact ( to seller ) to relocate a trash transfer point to right next door might be a fact that materially affects the value of property being sold ...
 

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