Q: I own hm outright. The HOA filed a fraud lawsuit. Havent been served. If I sign quit claim deed, will it void suit?
I have left the community. I would like to quit claim the property and avoid the years long cost and harassment
A:
Dear Recipient of Fraud Lawsuit by HOA: The general legal premise is that a FRAUD claim (or termed "cause of action", once a lawsuit is filed) is PERSONAL in nature. That means the cause of action survives the transfer of property, and a Quitclaim Deed transfer of the underlying property will not eliminate the personal cause of action against you for fraud. In order to get a full understanding of the nature of the fraud claim I would need more facts (examples: is the HOA pursing YOU as an individual for conduct they alleged YOU performed while owner/occupant ? or, is this really a claim for assessments for alleged violation of CCRS while you occupied the condo ?). Lastly, I would be remiss if I didn't caution that in all transfers of property (your Quitclaim example, or if a full blown title-and-escrow transfer, both looked at the same), the Seller has a duty to disclose any "material fact" that a buyer may reasonably need to assist their decision-making in the purchase of the subject property.
JIM GREER is an attorney licensed to practice in CO and CA and has specialized in real estate matters for the past 30 years; nothing herein shall be construed as the offering of legal advice insofar as Mr. Greer is not in an attorney-client capacity with the inquiring party. 303.818.8422
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