Real Estate Law Question

[CyTom]

When shopping for houses last spring we were looking for houses in non-Home Owner's Association areas and were shown a few in Ankeny. We ended up buying a house in which the disclosure statement stated there wasn't a HOA. Shortly after moving in we received an invoice for HOA dues even though we had not been disclosed of such HOA nor signed or paid any transfer fee at closing (which is supposedly part of the HOA dues). We did not pay and now we are getting billed again this year. Here is my question...we signed covenants that were given to us at closing that are not the original covenants listed in the abstract. Even though we were billed for a partial year of dues (our builder claims to have no idea about the HOA as if he was never billed for the rest of the year's dues). The covenants the management company sent me and that are in the abstract state no vinyl siding, only 3 car garages, no basketball hoops, only disguised dog kennels, etc that all have been violated and no such enforcement as if there is no acting HOA. I told mgmt company I wanted explanation of why all of these violation were allowed to happen if we are trying to keep property values high but never received an answer or a call back with a found answer.

Ok, having said all of this that has happened/occurring are we obligated to legally pay the HOA dues?

 

[cytech]

When shopping for houses last spring we were looking for houses in non-Home Owner's Association areas and were shown a few in Ankeny. We ended up buying a house in which the disclosure statement stated there wasn't a HOA. Shortly after moving in we received an invoice for HOA dues even though we had not been disclosed of such HOA nor signed or paid any transfer fee at closing (which is supposedly part of the HOA dues). We did not pay and now we are getting billed again this year. Here is my question...we signed covenants that were given to us at closing that are not the original covenants listed in the abstract. Even though we were billed for a partial year of dues (our builder claims to have no idea about the HOA as if he was never billed for the rest of the year's dues). The covenants the management company sent me and that are in the abstract state no vinyl siding, only 3 car garages, no basketball hoops, only disguised dog kennels, etc that all have been violated and no such enforcement as if there is no acting HOA. I told mgmt company I wanted explanation of why all of these violation were allowed to happen if we are trying to keep property values high but never received an answer or a call back with a found answer.

Ok, having said all of this that has happened/occurring are we obligated to legally pay the HOA dues?

Hard to say one way or another with out seeing all the documents involved. But just be aware that a HOA can force a lien sale of a house to collect past dues. Even if they are only owed some smaller amount like $1000.00.

Sounds to me like someone messed up at closing but that might not save you in the end.

 

[ISU_phoria]

Home owners are liable for the information they provide on disclosure statements for 2 years, iirc. But, it has to be proven the information was intentionally wrong. I would think the former owner had to have known about the HOA. Their lack of disclosure could/should make them liable. However, the effort it would take to get damages from them, may not be worth it. Sometimes the threat of action on your part could be enough motivation to get them to provide some form of compensation. That may not make you whole as the HOA will last in perpetuity, but it could help.

you should also get a copy g the HOA by laws. The lack of enforcement may give you some rights to avoid payment, but each set of by laws is unique.

 

[Raymeus]

Laws are different in every state (I'm a RE lawyer in Illinois). The bottom line, however, is that either your property (as identified by parcel identification number or legal description) is in the HOA or it isn't. The title policy you received after closing should identify all the things that your property is subject to, which are called exceptions (such as your mortgage (if you have one), easements, etc.). If the title policy identifies the HOA as an exception, then you own your property subject to the HOA and they are authorized to collect dues from you. If the HOA is not identified as an exception, then you have no obligation to pay (unless there was something else you signed agreeing to pay HOA dues). Find this out first and pay if you are in the HOA (so you don't get in a lien situation) and then go after whoever screwed-up at closing (e.g., builder for fraud, etc.).

 

[GoCubsGo]

Laws are different in every state (I'm a RE lawyer in Illinois). The bottom line, however, is that either your property (as identified by parcel identification number or legal description) is in the HOA or it isn't. The title policy you received after closing should identify all the things that your property is subject to, which are called exceptions (such as your mortgage (if you have one), easements, etc.). If the title policy identifies the HOA as an exception, then you own your property subject to the HOA and they are authorized to collect dues from you. If the HOA is not identified as an exception, then you have no obligation to pay (unless there was something else you signed agreeing to pay HOA dues). Find this out first and pay if you are in the HOA (so you don't get in a lien situation) and then go after whoever screwed-up at closing (e.g., builder for fraud, etc.).

In Iowa it will be your title opinion from a lawyer rather than a title policy from an insurance company, but same concept.

 

[cyflier]

In Iowa it will be your title opinion from a lawyer rather than a title policy from an insurance company, but same concept.

Not 100% accurate, some lenders will order title insurance instead of a title opinion, especially out of state lenders.

 

[06_CY]

When shopping for houses last spring we were looking for houses in non-Home Owner's Association areas and were shown a few in Ankeny. We ended up buying a house in which the disclosure statement stated there wasn't a HOA. Shortly after moving in we received an invoice for HOA dues even though we had not been disclosed of such HOA nor signed or paid any transfer fee at closing (which is supposedly part of the HOA dues). We did not pay and now we are getting billed again this year. Here is my question...we signed covenants that were given to us at closing that are not the original covenants listed in the abstract. Even though we were billed for a partial year of dues (our builder claims to have no idea about the HOA as if he was never billed for the rest of the year's dues). The covenants the management company sent me and that are in the abstract state no vinyl siding, only 3 car garages, no basketball hoops, only disguised dog kennels, etc that all have been violated and no such enforcement as if there is no acting HOA. I told mgmt company I wanted explanation of why all of these violation were allowed to happen if we are trying to keep property values high but never received an answer or a call back with a found answer.

Ok, having said all of this that has happened/occurring are we obligated to legally pay the HOA dues?

I own a townhome and am constantly ****** off at the HOA and the Management Company for not enforcing the rules or the other owners/renters. I will never buy another place with a HOA.

 

[CyTom]

This was an out of state lender and I did have to pay title insurance at closing. Would they be able to tell me if I'm responsible for the dues?

 

[GoCubsGo]

This was an out of state lender and I did have to pay title insurance at closing. Would they be able to tell me if I'm responsible for the dues?

As the poster above said, check the exceptions noted in the policy.

 

[cyflier]

Are you by chance located in a subdivision in South Ankeny? I have a couple buddies who live in one down there and all of sudden they get $75/month HOA dues.

 

[Gorm]

Thank god I don't live in a HOA. 75 bucks a month? For what exactly? HOAs to me always seemd like rules organizations. Not sure what they would be doing with the money.

 

[cyflier]

Thank god I don't live in a HOA. 75 bucks a month? For what exactly? HOAs to me always seemd like rules organizations. Not sure what they would be doing with the money.

The HOA we had in KS was great. $550 /yr took care of the pool, walking trail, park and garbage service. $75/month is ridicolous without a lot of amenities.

 

[BirdOfWar]

I would like to know how to get rid of an HOA. Is that possible?

I live on the NE side of Ankeny, and I also did not know about the HOA when I first moved. The HOA that I fall under literally provides no service that benefits me. There are townhomes to the east of me so I understand the HOA for that, but there is several blocks of houses to the west of them that all fall under their HOA. There is no common space to maintain or anything like that.

 

[Cyclonesince78]

Not 100% accurate, some lenders will order title insurance instead of a title opinion, especially out of state lenders.

Correct me if I'm wrong, but pretty sure on purchases you will always have a title opinion. On Refi's a lot of lender's use title insurance.