Non-compliant house now listed for sale

Started by CharlesP7 • 12 replies • 726 views

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CharlesP7 (Louisiana)
Posts: 15

Posted:

I have posted about this in the past but we have one owner that painted over their brick without an approved ACC request. The owner was made aware of the violation and given time to rectify prior to fees being applied. Despite our boards direction to the property management company to ensure this issue stays in the forefront of drive thrus, etc. The Property management company has had different people conduct the drive thru for violations and each time has been different on whether it was captured or not.

Recently, the lot owner had an attorney send a letter requesting the governing documents of the community, after providing the documents and now 2 weeks later there is a 'For Sale By Owner" sign in the yard. I have informed the property management company of the sign and the response is, since it isn't a realtor this will be tough. What can we do?

Here is a link to the restrictions for this property; http://www.pelicanam.com/manchacharbor/document_view.asp?id=20

DouglasK1 (Florida)
Posts: 2,046

Posted:

Whether there is a Realtor or not, I don't think you can stop somebody from selling a house.

In my area it is common for the closing agent (usually a title insurance company) to request an "estoppel certificate" which we are required by state law to provide. The law requires we provide current assessment status, special assessments for the validity period of the certificate, and other info such as deeded parking spots. The association is bound by the information on the certificate, we can't go back later and say "oops, you owe $1000."

Violation information is not required to be provided, but many closing agents ask, and when there are violations, we provide that information whether requested or not.

Even then, it doesn't keep a property from being sold, or require delinquencies or violations to be cured. It just notifies the buyer so they can't claim later they didn't know.

Escaped former treasurer and director of a self managed association.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I've always been of the approach of the HOA can fix the violation and send the owner the bill. It is allowed in our documents. Of course you may need a lawyer to approach the house to do the work and all. In our case, we did not as the property around the house we owned. So there was no "Trespassing" for us. That does NOT apply to other HOA's.

Depending on which state you live in, the owner should be turning over the documentation to the buyer by closing. The new owner may review and notice the issue. You may get lucky and the new owner will ask the HOA questions. That is when can reveal that the house is in violation.

I don't know why the owner had to have a lawyer force your HOA to turn over the CC&R's or Articles of Incorporation. Those are NOT the responsibility of the HOA to provide. They are public documents. The By-laws and ACC rules are the HOA's. Which the HOA should provide upon request.

Former HOA President

TimB4 (Tennessee)
Posts: 21,059

Posted:

I would inform the attorney that his client is selling a property with known violations and please remind the client about the duty to disclose that fact.

If concerned, have your Association attorney write that letter for you.

DouglasM6 (Arizona)
Posts: 724

Posted:

Charles- Call the selling realtor and let them know the home is in violation in its current state. That'l get the ball rolling.

DouglasM6 (Arizona)
Posts: 724

Posted:

Sorry, I didn't read it all the way through.

It will be tough. I would try to file the violation with the county under the address so it comes up when a search of the address is done. The title company will most likely contact the HOA at some point. Even finance companies do. That is your opportunity to make it known.

CarolF (Florida)
Posts: 435

Posted:

How long has the house been in non-compliance?

CharlesP7 (Louisiana)
Posts: 15

Posted:

The house was painted two years ago and it took 11 months till the HOA sent a non-compliant notice due to the fact that our community had suffered a devistating flood. Since over 90 homes were flooded the board of directors thought it was best to relax the restrictions for the period of one year. Upon reenforcing restrictions a message went out that said if had done exterior work and didn't follow proper process in submitting an ACR to do so now or non-compliance letters will be issued. So this owner submitted a request to paint the brick that was denied by the committee. Then they met with the board and property management and decided to give the owner 4 months to get the house back in compliance or else non-compliant fees would start. At the end of the 4 months and after receiving first fee tis when they had an attorney submit the letter.

AugustinD
Posts: 5,144

Posted:

Section 3.28 of your CC&Rs speaks of a "Construction Deposit" being forfeited when an owner does not get permission to paint the exterior. Did the HOA collect this Construction Deposit?

Does your HOA have a schedule of fines for violations?

Has any fine been imposed?

Has the HOA approved other similarly painted homes?

Depending on the answers to the above, I recommend sending a letter, registered mail return receipt requested, to both the attorney and the owner (as the seller of the house) stating the house is not in compliance and citing what enforcement the HOA may take to correct the situation.

GenoS (Florida)
Posts: 4,276

Posted:

Quote:

Posted By DouglasK1 on 05/21/2018 3:35 PM
Violation information is not required to be provided, but many closing agents ask, and when there are violations, we provide that information whether requested or not.

I think the legislature changed that last year, Douglas. In FS 720.30851 Estoppel Certificates, specifically 720.30851(1)(h) "Assessment information and other information:" item #7 under "OTHER INFORMATION" is as follows...

"Is there any open violation of rule or regulation noticed to the parcel owner in the association official records? (Yes) (No) ."

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By GenoS on 05/22/2018 3:17 AM

Fair enough, we've always provided that info so no real change for us.

In any case, I was just giving an example of how the OP's situation is handled here. I can't say what the law and customary practice is in LA and I don't know that we have regular posters from that state to help with specifics.

Escaped former treasurer and director of a self managed association.

CharlesP7 (Louisiana)
Posts: 15

Posted:

Sorry, was travelling, so we do have a fine resolution. It speaks more on the fine for first notice/second notice and timeframe between the two.

Yes a fine has been imposed.

No the HOA has not approved any of the homes to paint the brick.

Speaking with the property management company, they believe that even if it sells, if the current owner does not disclose the non-compliant status to the new owner it opens them up for civil suit between them. The HOA will just not authorize any ACRs, and continue to levy the non-compliance status.

I know Louisiana is a strange beast when it comes to laws and legal codes. Not sure what we can do aside from send the certified letter. Or if it will even do anything.

PatJ1 (North Carolina)
Posts: 568

Posted:

Please speak to your lawyer. If you don't have one, search out an HOA lawyer, they are a special breed. Please do not take your PM's word. HOA's don't want to spend money on attorneys, but they really are the best and the more info you know will keep your costs down.

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