QUESTION

When selling a condo with a special assessment, am I obligated to pay the special assessment before closing? Or can that be negotiated in to deal?

Asked on Jan 26th, 2016 on Real Estate - California
More details to this question:
N/A
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1 ANSWER

Real Estate Attorney serving Oakland, CA at Sack Rosendin LLP
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As long as you disclose the special assessment and what it is about, completely, then yes, you and the buyer can negotiate whatever you want. What the special assessment was for will determine what you need to disclose. If it was for a one-time rules violation, like letting a dog run off-leash, then just say so, and the buyer won't care. If it's the first or one in a series of escalating assessments for improvements to your unit in violation of the CC&Rs, the buyer might want to investigate that one more thoroughly. If it's a special assessment for repairs or replacements for which there were insufficient funds in the reserves, the buyer might want to investigate that, too. If it was to cover a construction defect problem, again, the buyer might want to find out whether or not the repairs funded by this assessment are the end of the problem or whether there might be more assessments. Whichever it is, don't hide the ball on the buyer. Fully informed, then you and the buyer can negotiate whatever you can.   If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business.   Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need.   Dana Sack            
Answered on Jan 27th, 2016 at 8:59 AM

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