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10/18/11 -I purchased a condo in Delray Beach, FL 11/18/11

 

Customer Question

10/18/11 -I purchased a condo in Delray Beach, FL
11/18/11 - The Title Company advised of a lien on the property that was never disclosed at closing, by the seller or the Title Co.
The loan is past due, I have proof that the Title Company was aware of this loan/lien, and Missed the Deed on Estoppel. The seller also stopped payment on the Nov payment.
7/17/12 - The Title Insurance Company denied coverage because the assessment appears to be a loan between the Condominium Assoc. and the Mtg. Co., a loan which the Condo Assoc. has the authority to enter into on behalf of the Unit Owners
7/27/12 - the FL Department of Financial Services • Division of Consumer Services denied the claim against the Title Ins. Co. because this would not be a matter for the title insurance to cover. This is an assessment that is on the property you purchased and not a lien that was present at the time of the sale. An assessment may generate a lien if it is not paid, but the assessments were assigned to you from the time of the sale. It would have been up to the seller of the property to notify you of any monthly or annual fees that were owed to the Condominium Association.

I have been advised by the Dept of Finance and the Title Ins. Co. to seek the help of a FL Real Estate Lawyer. Can you help me, the loan/lien is for $3,000 but it has accumulated late fees and other fees ($3,500). Can I sue the seller in small claims court?

 

Optional Information:
State/Country relating to question: Florida

Already Tried:
Contacted, Title Ins Agency, Title Ins. Company, FL Department of Financial Services • Division of Consumer Services and the seller

Submitted: 320 days and 19 hours ago.
Category: Real Estate Law
Value: $49
Status: CLOSED
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Expert:  JudgeLaw replied320 days and 19 hours ago.

Thank you for using Just Answer. If you require clarification, please feel free to post a follow up question.

Did your attorney get a Paid Assessment Letter and Waiver of Right of First Refusal when you closed?

Customer replied320 days and 18 hours ago.

I don't know, but will find out and let you know.

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Expert:  JudgeLaw replied320 days and 18 hours ago.

You should have. Usually the title company will not issue an owner's policy without a paid assessment letter from the association. That letter would be a defense to the association claiming unpaid assessments after closing.

Customer replied320 days and 18 hours ago.

I have the Owner's Policy and The Loan Policy of Title Insurance ,but no letter

Accepted Answer

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Expert:  JudgeLaw replied320 days and 17 hours ago.

You may have a claim against the seller for not disclosing the current status of the assessments. A suit in small claims court may be a viable alternative.

Additionally, the association may have failed to disclose the status of the assessments. They may be liable to you. There would have been a paid assessment letter. Check with your attorney. You would not necessarily have been given a copy, but your attorney should have gotten one.

Expert TypeLawyer
Category: Real Estate Law
Pos. Feedback: 95.7 %
Accepts: 2771
Answered: 8/2/2012

Experience: Over 25 years of legal experience.

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Expert:  JudgeLaw replied320 days and 14 hours ago.

I haven't received a rating for my answer. Are you having issues rating me? Please reply back and let me know; rating is a critical part of the question process. Thank you.

Customer replied320 days and 1 hours ago.

How do I go about making the association liable. Report them to the FL Dept of Finance or another branch or go directly to small claims court?


 


My attorney is not helping out much, she wants a fee that is more than the assessment. Yo u have been very helpful.

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Expert:  JudgeLaw replied320 days and 1 hours ago.

The limit for claims in Florida small claims court is $5000. So, that may be the way to go to make a claim against the association. You need to find the Paid Assessment Letter first, though.

Also, you should have your own attorney review the owner's policy. Do not be too quick to let the title company off the hook. They would not have closed on a condo without a letter from the association.

Customer replied320 days and 1 hours ago.

I live in NJ, The seller is in NY, the condo is in FL, Where do I go to put in my complant ? small claims in FL?

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Expert:  JudgeLaw replied320 days and 1 hours ago.

For the association, Florida, where the property is located. Ifthe contract does not state otherwise, you can sue the seller in NJ.LawGuy41124.5635223032

 
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