What is the name of your state?CA
Is it Legal for a Property Management Co to Impound Taxes and Insurance without an agreement to do this ?
I know with my previous mortgages the Lender was required to make a separate agreement or at least I was given specific notification in black and white if they would be escrowing the funds to pay T&I.
I understand that a Mgmt Co needs funds to pay for monthly recurring bills, but this is a larger amount to withhold from the property owner and there are perks you get for having larger accounts in banks; so I feel short changed by the Mgmt Co impounding the t&i without clearly saying that they would do this. They already have $5000 + funds in reserve per the contract to cover t&I. and the contract states that I have 7 days to reimburse the Mgmt Co if they go below the reserve balance.
I ask this question in the Real Estate section ( not contract ) because I am wondering if there is some technical rule in RE that requires Lenders ( and fiduciary Real estate professionals & practices) on how to treat impounding of t&I....
Is it Legal for a Property Management Co to Impound Taxes and Insurance without an agreement to do this ?
I know with my previous mortgages the Lender was required to make a separate agreement or at least I was given specific notification in black and white if they would be escrowing the funds to pay T&I.
I understand that a Mgmt Co needs funds to pay for monthly recurring bills, but this is a larger amount to withhold from the property owner and there are perks you get for having larger accounts in banks; so I feel short changed by the Mgmt Co impounding the t&i without clearly saying that they would do this. They already have $5000 + funds in reserve per the contract to cover t&I. and the contract states that I have 7 days to reimburse the Mgmt Co if they go below the reserve balance.
I ask this question in the Real Estate section ( not contract ) because I am wondering if there is some technical rule in RE that requires Lenders ( and fiduciary Real estate professionals & practices) on how to treat impounding of t&I....
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