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CA real estate law, home owner association, special assessment

Asked over 3 years ago - Beverly Hills, CA

In a sale situation, who is legally responsible - the seller or the new owner - for a special assessment that was passed five days before final closing of the property yet issued as a bill on the assessment a month AFTER closing and due two months AFTER the date of closing?

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Attorney answers (2)

Alec Scott Rose

Reputation Level 15

Answered over 3 years ago. Violent Crime Lawyer in Santa Monica, CA.

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The owner on the date the assessment is due is liable to pay it (The assessment attaches to the property, so anyone in possession of the property where the assessment was not paid is subject to any remedy the HOA is permitted under the CC&Rs or state law, including foreclosure). The buyer and seller should probably negotiate an apportionment of the assessment, depending on what it is for and the overall economics of the situation.

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Matthew Thebaud Allen

Reputation Level 9

Answered over 3 years ago. Land Use / Zoning Attorney in Los Olivos, CA.

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The obligation to pay home owners association fees runs with the land. Thus, the owner of the property is required to pay it, regardless of when it was assessed. If that owner wants to try and collect from the previous owner, it may be tough. First, lets assume that the assesment was not disclosed or listed in the escrow. The present owner will have to show that the previous owner knew or should have know of the assesment at the closing. This would create an obligation to disclose. That being said, the bill is still not due and all of the benefit runs to the new owner. It may be hard to show damage for the new owner, who gets all the benefit of the assesment.

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