Q: What is my responsibility as the seller to property's HOA agreement to mediate?
I sold my property to a corporation. Everything cleared and closed through title. Now HOA is sending me an Agreement to Mediate, stating that the HOA does not allow the property owner to be a corporation. Shouldn't this have been caught by the title company, and never gotten to closing? What is my responsibility here?
A: Typically, HOA receives a copy of the sale and purchase contract prior to closing in order to respond with a letter confirming if there are any outstanding dues do and if there are any special assessments, etc. and to do a credit check on the new owners. Therefore, the HOA must have been on notice.
A: If you do not mediate the HOA is free to file a lawsuit. As the owner of the property it was your responsibility to know the restrictions in the HOA documents. You will need to obtain a copy of the estoppel to see if the correct information was provided to the HOA and they may have some responsibility if this was overlooked.
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