Dues Refund

One of the prior developers in our Mississippi community, liquidated his remaining lots 3 months after paying annual dues. The closing attorney was notified prior to closing to collect the dues from the new owner and refund pro-rated dues to the seller as part of closing. This did not happen.

The seller now is asking the HOA for a refund of pro-rated past dues for the balance of the year.

Question, is the HOA responsible for dues refund to the seller and then collecting from the new buyer or is the seller responsible for collecting from the buyer?

Our covenants are unclear in this situation, only stipulating that the dues are the personal obligation of the owner at the time they are due.

I cannot find a clear reference to this in Mississippi statues.

Any help would be appreciated.

Thank you!

Want to make sure we understand the situation. The developer/seller sold off his 3 lots. He then had paid the dues up the end of the year. The buyer then bought the lots before the end of the year was up. Which means the new buyer was responsible for the dues from the point of sale to the end of the year. That means the seller/developer believes is owed a pro-rated amount of the dues they paid from point of sale to end of year.

The HOA can NOT collect double dues on the property. I would have to say the HOA is responsible for returning the seller the prorated dues. However, the also must make sure the new buyer is paying the dues and is up to date. The new buyer will be the one to go after for unpaid dues.

Hopefully, the buyer is not under the impression their dues were paid up to the end of the year. If that is the case, then that is between the seller and the buyer. It should have been in their contract which means BOTH parties are paid up to the end of the year.

Jon

I am not nor do I play lawyer.

I say the dues refund like pre-paid tax refunds are between the seller and the buyer. None of the HOA's business.

We do the same as Richard.

The HOA really has zero knowledge of what deals were or were not made prior to closing or at closing. It's an issue between the new owner, previous owner, Realtors and closing company.

The only way the HOA would be in a proper position to issue a refund is if someone overpaid them.

If the seller AND the buyer both paid dues, then a refund is due to someone (the current owner I would think).

If dues were not overpaid, the HOA doesn't have anything to refund.

Thank you everyone. We are taking the position that it is between the buyer and seller. Will post back if the seller pushes it to a legal matter.

THANKS!