Can the management company of my homeowners association stop me from short-selling my condo?

I was told by the management company that I cannot sell my condo until the 10k assessment loan was paid off. This loan was required by each unit since there were insufficient reserve funds to take care of the required maintenance.

Asked on July 15, 2010 under Real Estate Law, California

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Maybe.  In a short sale the lender has to agree to sell the property for less than the market value.  If there are liens on the property that can not be satisfied or compromised then it could hold up the sale.  No buyer is going to agree to take title to property that in encumbered with liens.  They will require that the liens be satisfied prior to closing.  So here you are with an agreement to short sale but you can not close.  You need to deal with the assessment loan at the same time that you deal with the underlying mortgage. You may have to negotiate a bit more to have this transaction go through Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.