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Who should refund special assessment payment by condo buyer?

Posted on Sat, Jan 08, 2011 @ 12:16 PM
  
  
  
I recently bought a Virginia condo which had a $26k special assessment coming due in 3 separate installments over the next 2 years. On the purchase contract that I put on the condo, the seller agreed to pay the first 2 installments of the assessment out of my mortgage proceeds, which essentially raised my mortgage loan amount. Since I have closed, however, they canceled the special assessment and will be refunding the money back to the people who paid. My question is who gets the money that was paid on behalf of my unit? The seller or myself? This would be very unfair if it went to the seller because my mortgage amount was increased to cover the costs, but it was put on the HUD as coming out of proceeds. Please give me some advice on this matter. Thank you.

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COMMENTS

without seeing your condo rules, but ours state in Pa. that when you sell your unit and you were the original assessment owner, you are to pay that assessment in full unless you made arragements with the new pending owner to drop the price of your condo to compenstate the difference. 
 
 
 
Now if the original owner paid 2 months or even 10 months of the assessment then he would be intitled to the refund not you. 
 
 
 
Why would you get the refund unless the arrangements were made in advance at the time o the sale. 
 
 
 
When I bought my condo the original owner never totd me of a pending assessment on the roof and 1 month after I moved in I got smacked with the assessment. Nice of the original owner to fill me in 
 
I should have went back to the realtor and filed a judgement but I left it go as it was only 2500.00. 
 
Taught me to read everything and find out first off before signing on the dotted line.

posted @ Saturday, January 08, 2011 12:48 PM by s


You as the buyer would get the refund as your mortgage was increased and you are paying for the assessment over a longer period of time. in addition, the assessment was canceled AFTER the loan was closed.

posted @ Saturday, January 08, 2011 1:15 PM by Richard


You should consult with an experienced real estate attorney. This is a situation which is not addressed in bylaws nor state condo act. It involves a substantial amount of money and you need solid advice.

posted @ Saturday, January 08, 2011 1:33 PM by Scott


Before we purchased our condo, we had our lawyer check the on the association's finances, as well as any liens or other financial problems that might come up after we signed all the papers.

posted @ Sunday, January 09, 2011 12:07 PM by AN


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