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Homeowner association question

Asked over 2 years ago - Los Angeles, CA

My HOA has been assessing the incorrect amount since closing (6 months ago). Now they sent me a letter stating during an audit then found an error and wish to collect the correct assessment for the last six months. Isn't this their error? Can they collect for this error in the arrears?

Additional information
A few months ago we called the HOA to update our billing address as this is a vacation home. The HOA representative stated in closing that we had a credit and offered to send a refund. We told them to keep the credit on file and we wouldn't expect to get a bill for awhile. They said we were paid up for nearly 18 months and that too much was paid in closing. Now a few months later we get this letter asking for additional funds to catch up due to their finding in the audit. It seems like they should waive the arrears and begin billing correctly now. Our we obligated to pay the arrears for their billing errors?

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Attorney answers (1)

Richard F Hamlin

Reputation Level 11

Answered over 2 years ago. Real Estate Attorney in Los Angeles, CA.

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-If I understand your question and additional information correctly, you closed the purchase of this vacation home about six months ago. At that time, the HOA told you that HOA dues had been overpaid. Now, the HOA is telling you that they found an error and want to collect dues for the past six months.
-It is not clear from your question whether the shortfall is from money that was due before you closed the purchase or since. It is also not clear how you and your seller allocated the HOA dues. It would be typical for the seller to pay the pre-close dues through escrow and for the buyer to be responsible for all post-close dues. If that is the case here, you probably would not be responsible for any pre-close dues. You probably would be responsible for post-close dues.
-If you closed only because you thought you had a large credit on HOA dues, you would have an argument that the HOA would be stuck with its error. otoh: if the HOA dues were not a factor in the decision to buy or the price that you paid, the HOA probably would be able to bill you for the correct amount of post-closing dues.
-Finally, a practical question: How much is at issue?

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