Expert: Dick Dennis - 6/7/2009

Question
I recently purchased a foreclosed home.  When I asked whether there was an HOA in the neighborhood, I was told "no."  In fact, my contract states no HOA.  However, there is an HOA in this neighborhood.  My question is, do I have to pay the HOA fees if I have a contract that says "no HOA?"

Answer
Actually, Jeanine, the registration of a HOA in any particular neighborhood is probably the second thing recorded on the property's title (property taxes are first). So, you really cannot escape that. However, the seller, whoever it is, has a responsibility here because they said there was no such responsibility in writing. I assume you had a Realtor help you purchase this property. That Realtor should have advised you about the HOA. Every Realtor has errors and omissions insurance. You could ask the Realtor about THAT omission.

When you closed on the transaction, you received title insurance. Actually it was your responsibility to read that report and understand it before you closed, something else your Realtor should have cautioned you to do. Had you read it, you could have objected to the HOA being on title. At that point you could have asked for your the return of your deposit and cancel the transaction. So, the question is, do you really want to do that? You do have it in writing saying there is no HOA. You could consult with a real estate attorney to see if it pays to pursue this. It may be worth it, and then it may not. Just maybe the HOA fees each year are not that much to worry about. I do wish you well, Jeanine.

Dick Dennis