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DavidA7 (California)
Posts: 179
Posted:
We just found out the a unit in our small complex sold almost a month ago in a short-sale. Looks like the owner pulled a fast one on the bank and sold it to a friend. Renters from previous owners are still unit and old owner told the Board they were selling "within the family" Very crooked but that's another story.

This unit is our #1 problem unit and in fact we have sent warning and fine letters to the unit this month. E-mail to the person at the Mgt. Co. that handles our account.

When the VP of the Co, not the person who normally handles our account but is aware of all the issues with the unit, e-mailed us today that the unit has closed escrow in late July and all fee's have been paid I asked the following

1) Why was HOA Board not informed Pre and Post Escrow: Response not our normal way of doing business
2) Noted that 2 month HOA dues were not collected: Response was not necessary only need to pay up to current
3) Why we sent out 3 letters to Mgt. Co. with old owners name in August when should of been to new owner. No response.
4) Who is new owner, contact info etc... response is Mgt. Co. only has name but no phone number.

other questions not relevant.

What do you think? Should Mgt. Co. have informed Board pre-closure when they sent paperwork on Escrow request and informed Board immediately upon learning of closing of Escrow?
Other comments?

TimB4 (Tennessee)
Posts: 21,061
Posted:
Should they have informed the Board - in my opinion, yes.

Were they legally obligated to? - it would depend on what the contract between the MC and the Association specifies.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Some issues are considered "Public notice". It means that the information can be found publicly by various means. The CC&R's and Articles of corporation of your HOA are "Public documents" available at the courthouse. Other issues such as foreclosures, liens, divorce decrees, and bankruptsies are also Public. If you view your local paper they print in the CLASSIFIEDS area of the newspaper under "LEGALS". It varies for each newspaper how often they print this information. Most people just ignore it or don't know it's there.

I am mentioning this as the MC may use this as an excuse. If they knew about it, then why didn't you kind of thing. This information is also VERY useful to monitor to see what houses are in foreclosure or liened. I found a trouble property days before the bank was foreclosing. I was able to file a lien just in time against the property.

The management company should have notified you all about it. Not much you can do now. Just hope the new owner is a good payer...

Former HOA President
SusanW1 (Michigan)
Posts: 5,202
Posted:
I think that the MC has the obligation to report to the board the names of people/units that are in arrears and what they are doing about it (using procedures as directed by the board)

I don't think the MC is obligated to tell you about sales, pending sales, who's buying what, etc. UNLESS the unit is owned by the HOA.

It seems that the board has procedures in place for back dues to be collected, and that's the important thing. That was accomplished.

I think there are other issues here that are perceived as the real problem.

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