HOA dues and set up fees

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HOA dues and set up fees

If a homeowner buys a foreclosure and the closing attorney does not inform him and collect the set up fee for an HOA, what recourse does the Association have against teh homeowner who is now refusing to pay.

Asked on June 22, 2009 under Real Estate Law, Tennessee

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

I don't understand.  You bought a foreclosure. Did you do your due diligence to determine if it was subject to a homeowner's association? The closing attorney is not your lawyer and has no duty to inform you of fees.  The closing attorney is usually hired by the other parties to complete the escrow/closing process -- in other words, not your lawyer. 

Why would you refuse to pay? Do you realize if you refuse, your only recourse is either to sell and be responsible for any of the HOA fees up to the point you sell or stay and be subject to the HOA placing a lien on your house and attempting to foreclose on you?

It is a sticky situation and unfortunately, it appears it was your responsibility to know you would be part of an HOA.

If you have additional concerns, consult with an attorney at www.attorneypages.com and check his or her record at the Tennessee State Bar.


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