- Aug 31, 2001
- 21,205
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Sorry to create another housing thread, but this is an unusual development and we need some thoughts. Pls take 2 mins to read thru and give me your thoughts.
The house we're in the process of buying, the one we have finished attorney review and home inspection on seems to be slipping away.
-About a month ago, seller and us came to an agreement on the price
-Soon after (next day) seller disclosed to us that the HoA will be doing a special assessment/major renovation that will cost each unit $10K upfront, or $68/month extra for the next 15 yrs. Seller claimed that she didnt disclose to us earlier because she didnt know what the exact amt will be until then (which was BS since she sits on the HoA board)
-after much huffing and puffing, we got the seller to pay for half of the upfront cost. This ended up working in our favor since we'd be getting a new roof, sidings, garage door, etc for half the cost.
-property went thru attorney review and is now under contract.
-last friday i logged into the HoA's website with the seller's username and pwd (which she'd provided to us) and found out that the construction is on hold because 50 homeowners have gotten together and filed a lawsuit and a temporary restraining order against the HoA 2 days before the construction was set to start.
-today I saw a further update that a judge did not dissolve the temp restraining order since neither parties (Defendants and Plaintiffs) could prove their damages at this hearing. So the lawsuit will go to trial on a date not yet set. Each day that passes w/o any work done is a day the HoA is under breech of contract with the construction company. There are two outcomes to this situation (verbatim from the letter)
A) The Plaintiffs will win and the Association could face bankruptcy and Owner Assessments to pay the Construction Company's and other parties damages and legal fees. The Association accounts could be totally depleted by this litigation, and you might have to pay an assessment to cover these damages, AND NOTHING WILL BE DONE TO THE PROPERTY FOR YEARS UNTIL THE ASSOCIATION ACCOUNTS BUILD UP AGAIN!
B) The Plaintiffs will lose and these 51 people could be personally responsible to pay the Association's legal fees and damages to the construction company and related parties.
Suffice to say that this is scaring us and got us totally down. We're so close to closing on this property and this shit happens. We're not sure if we want to buy this place until this matter is resolved but it could take months or years before this is resolved. We're under contract, so we cant really back out just cuz we dont like this recent development. But part of us still want this place. Is it possible to back out or push the closing by a month (currently set for 6/30)
We just dont know what to do.
Thanks for reading
The house we're in the process of buying, the one we have finished attorney review and home inspection on seems to be slipping away.
-About a month ago, seller and us came to an agreement on the price
-Soon after (next day) seller disclosed to us that the HoA will be doing a special assessment/major renovation that will cost each unit $10K upfront, or $68/month extra for the next 15 yrs. Seller claimed that she didnt disclose to us earlier because she didnt know what the exact amt will be until then (which was BS since she sits on the HoA board)
-after much huffing and puffing, we got the seller to pay for half of the upfront cost. This ended up working in our favor since we'd be getting a new roof, sidings, garage door, etc for half the cost.
-property went thru attorney review and is now under contract.
-last friday i logged into the HoA's website with the seller's username and pwd (which she'd provided to us) and found out that the construction is on hold because 50 homeowners have gotten together and filed a lawsuit and a temporary restraining order against the HoA 2 days before the construction was set to start.
-today I saw a further update that a judge did not dissolve the temp restraining order since neither parties (Defendants and Plaintiffs) could prove their damages at this hearing. So the lawsuit will go to trial on a date not yet set. Each day that passes w/o any work done is a day the HoA is under breech of contract with the construction company. There are two outcomes to this situation (verbatim from the letter)
A) The Plaintiffs will win and the Association could face bankruptcy and Owner Assessments to pay the Construction Company's and other parties damages and legal fees. The Association accounts could be totally depleted by this litigation, and you might have to pay an assessment to cover these damages, AND NOTHING WILL BE DONE TO THE PROPERTY FOR YEARS UNTIL THE ASSOCIATION ACCOUNTS BUILD UP AGAIN!
B) The Plaintiffs will lose and these 51 people could be personally responsible to pay the Association's legal fees and damages to the construction company and related parties.
Suffice to say that this is scaring us and got us totally down. We're so close to closing on this property and this shit happens. We're not sure if we want to buy this place until this matter is resolved but it could take months or years before this is resolved. We're under contract, so we cant really back out just cuz we dont like this recent development. But part of us still want this place. Is it possible to back out or push the closing by a month (currently set for 6/30)
We just dont know what to do.
Thanks for reading