no active HOA on property I'm interested in?

Started by TimF3 • 5 replies • 2221 views

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TimF3 (Missouri)
Posts: 2

Posted:

I'm interested in a carriage house. The property is cash only because there is no active HOA on it (according to the property listing). The front house was turned into two condos, with the carriage house presumably also condoized. They are all in foreclosure now and the bank is selling them. They are selling the carriage house separately. I am wondering what I am potentially walking into in a situation like this. Will I need to dissolve the previous HOA if there was one. Anyone been in this situation?

SusanW1 (Michigan)
Posts: 5,202

Posted:

You need to figure out if this is one condo complex - the big house AND the little house together, governed under one oorporation, with a CCRs and bylaws.

Don't buy this until you know. You could be getting into a big mess.

The bank should be able to tell you what the structure of the HOA is, if it even exists anymore.

Also, look at the last deed filed at the county.

BrianB (California)
Posts: 2,820

Posted:

tim, one thing to triple check is the existence of the HOA.. don't believe the listing, ever.

Rarely believe the realtor, unless they tell you there IS an HOA. if they tell you there isn't, chances are good they are incorrect.

Check the Deed, double ask the title search people, verify everything yourself. it is rare that something that was once and HOA wouldn't be an HOA now, and even if there is no ACTIVE HOA, it doesn't mean the HOA rules/regs can't become active and bind you to them after you purchase.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

with the carriage house presumably also condoized.

Also check with the town to see if the carriage house has an occupancy permit. I've seen many garages, etc turned into illegal apartments and the code inspector finds out and shuts it down.

You have alot or research to do, but you may turn up a good deal if you can work everything out.

TimF3 (Missouri)
Posts: 2

Posted:

thanks everyone, I'll start getting answers to all these questions (which should be at least easier now that I know what to ask).

TishS (Washington)
Posts: 116

Posted:

As everyone has already said, dig deep into every record on this property. Do not trust what the title company gives you. I have done 4 title requests from 4 different title companies...all came back differently. Title companies only provide HOA information as a courtesy..they do not guarantee any of the accuracy.

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