Can HOA stop escrow???

Selling my condo in CA. It’s on second floor and carpets are required. I received approval to change dining are to vinyl for medical reasons.

Agreement states it must be changed back following sale of unit.

But HOA is stating I must change before the sale. And says they will not approve escrow until it’s done.

Doesn’t make sense though. Do they have the power to stop escrow?

Technically I am still living there until I exchange keys and have disclosed to buyer it must be changed when they move in

But HOA has now made buyer’s wary that I must change now as a contingency.

Did we not miss the part where the OP stated "Agreement states it must be changed back following sale of unit."?

I would speak with the Real Estate agent about bringing legal action against the HOA for violating the agreement.

Can you provide copies of the agreement to all affected parties, emphasizing to them that the HOA approved the flooring change *after* the sale of the unit? With luck that should be enough

I assume you're working with an agent to sell the home. Does he/she have any advice? I would think that's one of the jobs for a seller's agent (not that there aren't plenty of incompetent ones out there).

I would also think that the HOA has some liability if their actions result in a lost sale - eg. unreasonable interference in a private transaction, or not abiding by a written agreement - but that's a question for an HOA attorney. Perhaps the hint of legal action could get rears in gear.

Actually, I handle these things on a regular basis. Once the ARC application is approved it is scanned and attached to the file of the unit, not the member.

This is what the OP posted in her opening statement

Technically I am still living there until I exchange keys and have disclosed to buyer it must be changed when they move in.

Does California have disclosure forms that must be completed before listing a home for sale? Given all of the state condo regulations, particularly those involving flooring, I'd expect there to be something like this.

If the OP did complete such a form, she's probably in the clear. If not, though, there may be grounds for the buyer to walk away without penalty. (My state has such a form, and false or incomplete information can void a sales agreement.)

I trust you meant "If the OP did complete such a form and disclosed the flooring situation, then she's probably in the clear."

Though not real wood, I think nice vinyl flooring planking, for one, can add a lot of value to a home. If whatever buyer/owner down the road has to cover up the vinyl flooring, well, I figure the home is arguably worth less.

From one California real estate-oriented site: "The most important concept to keep in mind is that you must disclose any material facts that you are aware of, even if they are not specifically addressed by the standard forms. ... The law broadly defines a material fact as any piece of information that might affect a potential buyer's decision to purchase." -- https://www.ediesellshomes.com/blog/When-Selling-a-House-in-California-What-Do-You-Have-to-Disclose#:~:text=The%20law%20broadly%20defines%20a,in%20the%20last%20three%20years.

I will say the facts of what the seller (ClareL) (formally and properly) disclosed about the flooring are not clear to me.

I am sorry you cannot clarify and say who disclosed this and at what point during the transaction this was disclosed. Now the forum, and future readers, get to waste time with a bunch of if-thens.



-- Please be clear: Which agreement? The purchase agreement between ClareL and the buyer? Or the agreement between the unit and the HOA?

-- If you properly and formally disclosed the agreement between the unit and the HOA (saying the flooring would have to be replaced post-sale), and the HOA is re-neging on the agreement between the unit and the HOA, then in my opinion you should speak to your real estate agent about taking legal action against the HOA. A well-worded letter from the agent to the HOA may fix things (assuming you did properly disclose the flooring situation to the buyer).

-- If you did not properly and formally disclose the agreement between the unit and the HOA, and the buyer is learning of the flooring for the first time from the HOA, then you messed up. Maybe the HOA is messing up too. Either way communications are not happening. If both the buyer and seller have agents, then these agents need to be talking and, if needed, figure out who has to make a move here: Seller, buyer, HOA or all three. God knows the agents want the sale to go through.

Then dig out your copy of the agreement where your vinyl plank flooring was approved and remind the HOA that they agreed the flooring must be changed after purchase, not before. Actually, I can see why the HOA would want it done this way, since they'd know the buyer is starting out with compliant flooring. But if that's not what the agreement said, then I believe they should abide by something they agreed to even if they have second thoughts later.

I agree with you that paying for carpet that will be ripped out is a waste of money and an unnecessary addition to the landfill (something that more progressive states tend to worry about). It also affects the owners below and around you since they have to put up with the commotion and smells of two floor replacements when only one is necessary.

For what it's worth, my condo CC&Rs say hard surface flooring in first floor units only. But vinyl plank is not considered hard surface, only wood, laminate, tile, slate and the like. I assume that you don't put carpet in your bathrooms, you use vinyl - so why is vinyl plank different? Different state laws?

Were I on the BOD I would want to see something in writing that the new owner will change the flooring back prior to moving in or within a specific period of time.

Who said what to who does not matter. I would want proof.

All is well folks. After reviewing the agreement with the HOA for the SEOCND TIME stating the change is required “following the sale of unit” and “following deed change of unit”, they will let the buyer change the carpet after the sale.

Thank you!

I think what happened is the HOA intent by having the caveat for allowance in the first place. My feeling is their intent was to make sure when unit changed hands that the condition was returned back to original. However, the wording of "sale of unit/exchange of deed" wasn't far reaching/defined enough.

It was "lost in translation" basically. The OP got lucky on this one. The HOA should have defined the sale of unit to mean maybe OFFER accepted the owner needed to change back to original condition. They may have needed to define once house is put up for sale etc... That way it would have been defined as the owner whom did the modifications is also responsible for paying for changing it back.

Otherwise, you get this situation where the seller can put the condition onto the buyer to correct. Which could make it harder for the HOA to correct. New owner/member may argue they can be "grandfathered" or it was that way when they bought it etc...

We don't have anything or way to have stopped one from selling except for lien in our HOA. If we did, then would have the terms of any modifications fall on the owner/member other than future member/buyer.