AZ HOA

Started by JoyB3 • 21 replies • 2007 views

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JoyB3 (Arizona)
Posts: 7

Posted:

We closed on a home Oct. 22, 2010 and received a voilation notice in January 2011 from the HOA management company for something done by a previous owner which was not disclosed to us in any documents from the time we signed the contract up to and through to purchase. Does the HOA have the legal right to come after us for something we did not do or know was not done without the approval of the board? I have the previous MLS listing going back to at least the first quarter of 2010 clearly showing the violation had already been done...is there a staute of limitations?

JonD1
Posts: 2,350

Posted:

Joy the answer would depend on what type of violation you have.

Is it a physical condition on your property or an act that took place prior to your purchasing the property?

Weren't you provided a statement at closing that the seller was clear of any debt or obligations to the association?

Were you given a statement they had a zero balance with the assiciation and were in good standing?

I would suggest you contact them ASAP and if this resulted in the behavior of the former owner perhaps request this violation be waived and matter closed.

If it is as a result of a physical condition on your property existing before you purcahsed the property which for some reason violates the rules and regulations you might need to address this t0 the Board's satisfaction.

Whatever you do begin with a cordial attempt to resolve the problem don't dig your heals in. Not the best way to start.

Good luck.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Is it non-compliant paint color?

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Just because you didnt do it doesnt exempt you from HOA rules. Fix what needs to be fixed and go after the seller for the costs if you want to be reimbursed.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Joy,

It might also depend on State law. Some States, like VA, say that if the issue isn't identified in the disclosure package and was on the house when purchased, then the item is effectively authorized.

I do not know AZ law so you should check those statutes.

Tim

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Joy:

Here is the website for AZ Statutes that Tim referenced: http://www.azleg.state.az.us/arizonarevisedstatutes.asp

I have glanced at a few this evening, but have not seen anything yet. You might call your title company you closed with and ask them your question. They may have a quick answer for you.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Joy,

Thanks to Janet for providing the link, I was able to locate the laws about disclosures. Here is a link AZ 33-1806

It states:

(e) If the statement is being furnished by the association, a statement as to whether the records of the association reflect any alterations or improvements to the unit that violate the declaration. The association is not obligated to provide information regarding alterations or improvements that occurred more than six years before the proposed sale. Nothing in this subdivision relieves the seller of a unit from the obligation to disclose alterations or improvements to the unit that violate the declaration, nor precludes the association from taking action against the purchaser of a unit for violations that are apparent at the time of purchase and that are not reflected in the association's records.

(f) If the statement is being furnished by the member, a statement as to whether the member has any knowledge of any alterations or improvements to the unit that violate the declaration.

Therefore, as you can see, if the issue was more than 6 years old and the Association provided the statement, they didn't have to tell you about it. However, they could still enforce it. If the issue was less then 6 years old or if the seller made a statement saying there were no issues and the Association could prove that they had informed the seller of it, you could take legal action to collect the money to have the issue corrected. That is stated in the same section of the law. Specifically:

B. A purchaser or seller who is damaged by the failure of the member or the association to disclose the information required by subsection A of this section may pursue all remedies at law or in equity against the member or the association, whichever failed to comply with subsection A of this section, including the recovery of reasonable attorney fees.

You should consult an attorney if you are considering recovering damages.

Tim

JanetB2 (Colorado)
Posts: 4,219

Posted:

Thank you Tim ... I was getting ready to check more into this issue this morning.

JoyB3 (Arizona)
Posts: 7

Posted:

Thanks to everyone who responded....the violation was an extended driveway...they said was unprofessional and done without approval. We took pictures it is professional just not a smooth finish...it's a sideway type finish. The letter we recieved from the management company and the phone call stated they would get a lawyer involved if not corrected in 14 days of the date of the letter. I sent back a registed letter contesting the violation and requesting a hearing before the board. We offered to look into fixing what the problem given more details but how can you be nice when they threated lawyers and penalties. They new were new owners, the first letter could have been alot nicer on their end.....

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Joy:

I understand how this possibly made you angry … being a new homeowner the first letter should have explained the situation in a non threatening manner. This would be something to mention to your HOA board and they in turn can speak with the Management Company, so this is avoided in the future. The management company works for the HOA and can be replaced if they become too high handed.

On the other hand PM’s deal sometimes with some angry individuals, it could be that they may have one employee who has not handled anger well and is now acting in a threatening manner towards most individuals. If they are not aware of the situation then they cannot fix any potential problems.

Keep us posted on what the board says … Best of Luck!!!

JoyB3 (Arizona)
Posts: 7

Posted:

To all who replied to my question....I contacted the Title company and they can't believe nothing was disclosed when they received the information from the HOA. The title company is pulling our file and sending it to their Attorney for review....will keep you posted.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Joy,

Very Cool. I hadn't thought of complaining through the title company.

Tim

TimB4 (Tennessee)
Posts: 21,059

Posted:

Joy,

I would suggest that You also request from the HOA for any information on when the issue was first noticed and if the previous owner was informed of it. If they ask why, tell them you are checking into having the previous owner pay for the issue (I would not explain that the Association could also be on the hook to pay for the repairs for non-disclosure).

The bottom line is that the issue needs to be resolved. State law allows the HOA to insist on compliance. so the question really boils down to who is going to pay for it. State law allows you to go after the previous owner, the Association or possibly, both to recover those damages plus the attorney fees. Of course if your title insurance covers it, great! Let them go after the HOA and seller and you won't have to deal with it.

Tim

JanetB2 (Colorado)
Posts: 4,219

Posted:

I was hoping they would be able to give you a quick answer.

JoyB3 (Arizona)
Posts: 7

Posted:

I had sent a registered letter Wednesday to the property mgmt company asking the specfic questions on when it was first noticed, why it was not notified to the previous owner or the title company etc....I also requested the hearing before the board. My hope is that the Title company can take care of it if not I am trying to cover my bases...

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Joy:

I did not want to get your hopes up because these items can vary so much in different States, but I was hoping when you called them to ask the question that you would get the response you received. If they did not immediately state it was excluded, then more than likely their attorney will contact the HOA and get the issue resolved. However, like you I am the type of person who likes to cover all my bases … you are doing GREAT!!!

I will be excited to hear how everything turns out for you.

JoyB3 (Arizona)
Posts: 7

Posted:

To All,

Here is my latest update on my HOA violation; I received an email from the Mgmt Co stating it was an open violation with the previous owner from the day it was installed stating they allow 30 inches per side to extend the driveway, be professionly installed and the one side was not installed properly. She will have the board review and get back in touch with a resolution to the violation.

The resolution should be since they failed to disclose this information to wave the violation and move on, or they can pay to have it removed and have their Mgmt Co go after the previous owner as they should have in the first place.

Will keep you posted.....

JanetB2 (Colorado)
Posts: 4,219

Posted:

Thanks for the update Joy. Have you heard any more from the Title Company?

DonnaS (Tennessee)
Posts: 5,671

Posted:

Joy,

And if the Title company had done their work, they should have spotted the violation issues from their search of the sellers/HOA records and picked that up. I think that is what Title insurance is for and hopefully you did have that. Also, if you financed the home, the lending institution should have also been aware. This sounds like too many people not on top of their game.

JoyB3 (Arizona)
Posts: 7

Posted:

I just found something called "buyer's acknowledgment receipt form" from the title company going to the HOA there are two paragraphs that reference Arizona Statues 33-1256, 33-1807 stating something to effect that all other fees and/or charges represent a personal obligation of the Person who was the OWNER of such unit at the time the fees and/or charges arose. .....This tells me they did not place any fines or get an attorney to correct the violation with the previous owner...how can they legally come after me?

On the same form it references Statue 33-1806 that the Mgmt company has to provide a disclosure statement on behalf of the HOA to make the new owners aware of all pertinent information to the property being purchased.......

Okay now the really tells me the Mgmt company did not do their job properly.

JoyB3 (Arizona)
Posts: 7

Posted:

The title company they heard from their corporate legal department and are waiting to hear from the Attorny who will be handling it.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Joy,

Again very cool. You asked how they could come after you even if they didn't fine the previous owner. They can come after you because the violation still exists and you are the new owner.

I refer you again to the sections of AZ statutes I posted earlier in this thread. The law allow the HOA to come after you. HOWEVER,

If the Association demands that it is fixed, then per AZ law, you could file legal action against the HOA and the previous owner for the cost of the repairs plus legal fees. I am guessing that once the Association finds this out that they will want to settle the issue out of court.

If they do request to settle, perhaps by allowing you to keep the driveway as is, get it in writing and have it stipulated that the Association considers the driveway to be in compliance with the guidelines (as this will protect you and a future owner when you sell). Otherwise, the whole issue could raise it's head again.

You might also want to contact the previous owner and see what they have to say about it. However, since your title company is involved, don't do much with the issue without keeping them informed and/or without their blessing.

Tim

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