Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (LAER Realty Partners)

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Rainmaker
563,429
Maria Sapio
Keller Williams of Central PA - Carlisle, PA
Real Estate Agent- Carlisle, PA. Mariasapio.com

Clearly outlined in the AOS:

Jun 29, 2018 08:55 AM
Rainmaker
5,572,175
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

well, someone knew it was coming....the buyer's agent did not do a thorough job.... assessments don't happen overnight....

Jun 29, 2018 09:20 AM
Rainmaker
689,725
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

If I had the seller I would disclose the assessment immediately & look to have the buyer assume it. Since this is something new the buyer can agree to assume it & proceed, back out of the deal or ask for the seller to cover a part of it. 

Jun 29, 2018 08:47 AM
Rainmaker
1,394,469
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

It would depend on when the assessment is due.  If after COE, it's the buyer's to handle.  If during escrow, I'd say the seller.

Jun 29, 2018 09:29 AM
Rainmaker
4,141,323
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

In my market,that would be a new disclosure the seller will make. 

Jun 29, 2018 09:24 AM
Ambassador
5,464,093
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Seems like the new owners will be reaping the benifits of the additional fee, but in the end it depends on what your contract says..

Personally I would stay away from any kind of real estate that involves an Association of any type.

Jun 29, 2018 09:41 AM
Rainmaker
1,114,505
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Equitable owner aside, the Seller holds title and is responsible for it until the day of closing.

Jun 29, 2018 09:07 AM
Rainmaker
903,867
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

You're on a freakin' ROLL today!

And the answer is . . . drumroll please!

Does your Contract NOT have provisions for special assessments and liens other than tax liens? I find that so surprising.

How does your Contract address prorations?

Jun 29, 2018 09:02 AM
Ambassador
3,082,181
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I am with Michael Jacobs - this would require additional disclosure from the seller.  And Ryan Huggins - Thousand Oaks, CA - AND as always, this can be negotiated provided the parties can come to an agreement.

Jun 29, 2018 12:47 PM
Rainmaker
710,234
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

What does the contract and its addenda say?

Jun 29, 2018 09:23 AM
Rainmaker
4,179,706
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

It depends on how your contracts are worded. If seller and/or his agent had confirmed with the HOA at time of listing and contract signing that there were no pending assessments, it's the buyer's lookout. Could be a very different story if they hid the fact and knew.

Jun 29, 2018 11:47 AM
Rainmaker
998,389
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Praful, I always ask if there are any assessments pending or soon to be announced. Unfortunately I think the buyer is stuck,

Jun 29, 2018 10:25 AM
Rainmaker
1,730,395
Lyn Sims
Schaumburg, IL
Schaumburg Real Estate Agent Retired

In my area our contract makes the seller certify that there are none up until closing. Let the negotiations begin - it's always tricky.

Jun 29, 2018 01:06 PM
Rainmaker
4,051,357
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Our contracts cover that.  The seller has to tell if there is one coming up.  plus 6 months of HOA meeting notes must be foward.

 

Jun 29, 2018 11:35 AM
Rainmaker
1,183,620
Margaret Goss
Baird & Warner Real Estate - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

Sometimes it doesn't matter who is supposed to pay it. Buyers get very upset when this happens and it usually makes sense for the seller to assume it - even if it's scheduled for after the close.  I've seen buyers threaten to cancel the deal over it.

Jun 29, 2018 11:01 AM
Rainmaker
392,261
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

Here in AZ, assuming we use the standard Realtor Contract, our HOA Addn states:

"Any current homeowner's association assessment which is a lien as of Close of Escrow shall be paid in full by the Seller."

So if it has been approved it is the Sellers. If it is only proposed, but not approved by COE it will go to the buyer.

 

Jun 29, 2018 09:59 AM
Rainmaker
4,092,624
Richard Weeks
Dallas, TX
REALTOR®, Broker

In Texas the seller owns the house throught the day of closing.  That fee would be pro rated from the first of the year through closing date.

Jun 29, 2018 09:51 AM
Rainmaker
928,401
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

 It appears that the seller made the necessary disclosure when he became aware of the problem. As has already been mentioned, a late disclosure triggers an opportunity for re-negotiation or cancellation. What will the parties do?

 

Jun 29, 2018 08:09 PM
Ambassador
2,117,371
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Every state is different but Maria Sapio showed it in black and white . Great job Maria

Jun 29, 2018 06:13 PM
Ambassador
3,044,146
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

As a seller i would pay it.  As an agent representing a seller I would advise they at least split the cost.

Jun 29, 2018 03:18 PM
Rainmaker
1,255,113
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

It depends on what your Purchase Agreement language states, for many it's pre-handled in the boiler plate language.

Jun 29, 2018 02:44 PM
Ambassador
3,506,406
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

 

It depends on what is in the contract and was it disclosed. I have seen the seller pay the entire assessment, I have seen it negotiated and I have seen a buyer accept an assessment but not frequently. Assessments are to be included in the documents. Is there an assessment  already in place, is there a future assessment? If you know about it... DISCLOSE!

Jun 29, 2018 01:31 PM
Ambassador
4,608,048
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I think it depends on the contract wording. If the assessment is "coming up" is that before closing or not? If after, buyer may be on the hook. Was there any mention in the HOA documents/disclsoures/board minutes?

Jun 29, 2018 12:12 PM
Rainer
87,870
Jeff Perlis Prime Properties
Prime Properties - Lake Arrowhead, CA
Experience Your Own Transformation!

All HOA documents have to be reviewed before removing contingencies. The seller might not know that information, that is a buyer responsibility to investigate and inspect. 

Jun 29, 2018 12:10 PM
Rainmaker
70,634
Ricardo Mello
Manhattan Miami Real Estate - Manhattan, NY
Manhattan & Miami Real Estate Agent

Did they really find out after?

Jun 29, 2018 11:55 AM
Rainmaker
6,675,959
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Follow the terms of the contract.

Jun 29, 2018 11:54 AM
Rainmaker
514,174
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Depends on the contract. Ours seller disclosure asks if there are any pending special assessments. Our contracts also request any CC&R's, Resale Certificate, etc to be reviewed and approved. 

 

Jun 29, 2018 10:24 AM
Rainmaker
4,433,753
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Legal question.

Jun 29, 2018 10:09 AM
Ambassador
4,310,777
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Depends upon your state's Purchase Contract, Praful. Sellers are mandated to pay any confirmed HOA assessments here.

Jun 29, 2018 10:10 PM
Rainmaker
923,423
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

That should have been disclosed BEFORE the agreement was signed!

The responisbilty would then be negotiable

Jun 29, 2018 05:03 PM
Rainer
86,464
Mike Kelly,CRS,CIPS
The MJKelly Team - Santa Rosa, CA
"One of Sonoma County's Natural Resources"

It's a material fact and here in California it must be disclosed which would bring in the 3 days right to cancel as per the Transfer Disclosure Statement. Seems to me the owner of the condo didn't share the by-laws, board minutes, etc with the buyer. Here in California HOA's are a royal pain in the tush. We must give all known correspondence to the buyer. I can't imagine an HOA just deciding willy-nilly to enact a new assessment. All depends how big it is, what it goes to and why is it being done. Defect litigation? I would then suspect the buyer also didn't examine the HOA's budget very closely. Either accept it, ask for a credit from the Seller or backout of the deal. 

Jun 29, 2018 04:02 PM
Rainmaker
653,162
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Seller has the obligation to disclose and the buyer has the right to cancel the escrow.

Jun 29, 2018 02:58 PM
Rainmaker
4,998,687
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Our contract has a box for the buyer's agent to select, and we always say if there is a assessment known prior to closing, Seller is to pay.

Jul 03, 2018 07:01 AM
Ambassador
2,576,857
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Seller

Jul 03, 2018 04:40 AM
Rainmaker
3,985,922
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Well 1st find out when the assessment was proposed and then enacted.

Then negotiate from there

Jun 30, 2018 08:55 PM
Ambassador
3,986,760
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

If the assessment is given during the time of ownership of the seller then in my opinion the seller pays regardless if there is a grace period for payment or delayed due date. Having served on several HOAs, when we issued the assessment notice we gave a window for payment to help people budget but considered it a debt at time of assessment. 

Jun 30, 2018 03:34 PM
Rainmaker
827,342
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

If it was a known fact, it should've been disclosed by the listing agent who should've done his due diligence. Normally the seller takes care of it, but if it's not spelled out anywhere, negotiate!

Jun 30, 2018 08:34 AM
Rainmaker
4,268,122
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

And the contract says? Hard to believe someone did not know something 

Jun 30, 2018 07:52 AM
Rainmaker
3,070,134
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Depends on the contract

Jun 30, 2018 06:51 AM
Rainmaker
2,648,743
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Whoever needs to benefit from this should step-up. A split not uncommon

Jun 30, 2018 05:52 AM
Rainmaker
4,799,601
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

This should be spelled out in the contract.  It is, in Florida contracts.

Jun 30, 2018 05:31 AM
Ambassador
1,921,485
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

So the sellers found out about an upcoming assessment after the contracts/disclosures were done and they disclosed right away?  So that's all good; the sellers did everything right.

As for who pays the actual assessment? Is it actually going to be charged to unit before closing? After closing? Is it a huge assessment? Tiny? Is it for something that's already been done, or for future work? 

I think it depends on the details but I'd say if the seller wants the deal to go smoothly they should offer to pay. If they lose the deal and stay in the home while trying to sell again, they'll be paying it anyway. Alternatively, if the buyer really wants the place, they should realize that's a part of home ownership in an area with associations and take care of it.

 

Jun 30, 2018 03:35 AM
Rainmaker
1,707,423
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

We had this happen on a Florida condo and it is the responsibility if the owner in Florida contracts.

Jun 29, 2018 07:08 PM
Rainmaker
5,650,962
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Praful,

Michael Jacobs said it best. A

Jun 29, 2018 05:24 PM