Current Sarasota Real Estate Topic

Who's Responsible at Closing for Unpaid Condo or Homeowner Association Fees

Posted July 19, 2007

    A recent real estate news article covered the topic of "What happens if, after contracting to buy a property "as is" in foreclosure, it turns out at closing that there are unpaid homeowner association or condo fees to be paid before you'll be granted clear title to the property ?" Who is supposed to pay them at closing ? That is an important issue that deserves clarification.

    "As is" in most real estate transactions, unless otherwise described in writing and agreed to in the purchase contract, refers to the physical condition of the property, not the title.  It is customary in Florida for the selling party to deliver "marketable and insurable title."  Since you cannot achieve clear title until that lien is removed, the seller, not the buyer, should pay those unpaid fees.

    You should clearly consult a reputatble real estate lawyer on issues like this, but if you are forced to pay them at closing, you can object in writing at closing and then demand payment from the foreclosing seller, usually a bank, mortgage company or government agency like Fannie Mae by mail.

      For a permanent home, vacation getaway or an investment property, the Sarasota real estate market, with its recent price correction, is hard to beat.  I invite you to request my free Sarasota Real Estate Package or call me directly at 941-228-2321 or toll-free at my Sarasota RE/MAX Office at 800-966-2334.