How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Phillips Esq. Your Own Question

Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Real Estate Law
Satisfied Customers: 12957
Experience:  B.A.; M.B.A.; J.D.
16551887
Type Your Real Estate Law Question Here...
Phillips Esq. is online now
A new question is answered every 9 seconds

I am selling my townhome to a buyer with a fedally backed loan.

Customer Question

I am selling my townhome to a buyer with a fedally backed loan. The lender says the hoa has to have a insurance bond for the hoa and the management co. The hoa is making us the sellers pay for the bond. The buyers won't. Instead they want a credit in escrow for the amount. My question is-Is this legal? Can the hoa make us pay when they are suppose to carry this bond. They don't want anyone buying here that has a ferdally backed loan.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Phillips Esq. replied 1 year ago.
Thank you for giving me the opportunity to assist you. Kindly use CONTINUE or REPLY button to ask for clarification or follow-up questions.

I am selling my townhome to a buyer with a fedally backed loan. The lender says the hoa has to have a insurance bond for the hoa and the management co. The hoa is making us the sellers pay for the bond. The buyers won't. Instead they want a credit in escrow for the amount. My question is-Is this legal?


Response 1: Unfortunately, it is legal.


Can the hoa make us pay when they are suppose to carry this bond.hey don't want anyone buying here that has a ferdally backed loan.




Response 2: Regrettably yes. You need the bond for your closing and not HOA. So, HOA has no incentive to assist you especially when they do not want buyers with federally backed loans. Unfortunately, if you do not get the bond, your closing would not happen, I am afraid.

Phillips Esq., Attorney-at-Law
Category: Real Estate Law
Satisfied Customers: 12957
Experience: B.A.; M.B.A.; J.D.
Phillips Esq. and 4 other Real Estate Law Specialists are ready to help you
Customer: replied 1 year ago.

I feel like I'm being harassed in this sense. I'm giving the buyers a credit and I'm paying for the bond too. Is that still legal? Can't I get any relief from this or am I just screwed?

Expert:  Phillips Esq. replied 1 year ago.
Hello: I am sorry for the delay in getting back to you. I was offline for most of the day.

Your follow-up post: I feel like I'm being harassed in this sense. I'm giving the buyers a credit and I'm paying for the bond too. Is that still legal? Can't I get any relief from this or am I just screwed?


Response
: You should not be giving the buyers any credit if you are paying for the bond. You cannot pay double for the same thing. As the Seller, you need to comply with the requirements of your HOA: that is, paying for the bond. You should not be given any credit to the buyers for the bond.

Let me know if you still need clarification.
Customer: replied 1 year ago.

Now, the HOA want us to reinburse them also for the bond. I found out the buyers lenders want indication that the HOA is getting the bond . I think the HOA told the lender they are buying it. They buyer wanted a two yera credit for the bond and won't release the last contengency until they get their loan, they are dealing with a bank. Do we have to reimburse the HOA now?

Expert:  Phillips Esq. replied 1 year ago.

Now, the HOA want us to reinburse them also for the bond. I found out the buyers lenders want indication that the HOA is getting the bond . I think the HOA told the lender they are buying it. They buyer wanted a two yera credit for the bond and won't release the last contengency until they get their loan, they are dealing with a bank. Do we have to reimburse the HOA now?


Response: NO. HOA cannot have it both ways. Either HOA purchases the bond and yor reimburse the HOA or your purchase the Bond and it ends there. You CANNOT pay for the Bond and also reimburse the HOA!!! What would you be reimbursing HOA? They did not pay for anything.

Your buyer needs to tell the lender what the HOA is doing. Someone needs to put a stop to it. HOA's action here is quite unethical and illegal for trying to get reimbursement for something that they NEVER PAID. If you HOA causes this sale by these illegal actions, you can file lawsuit against the HOA.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Lawyer

    Satisfied Customers:

    6227
    20 years extensive experience in real estate law, foreclosure, finance, and landlord tenant law.
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Lawyer

    Satisfied Customers:

    4966
    13 years real estate, Realtor. Landlord 24+ years
  • http://ww2.justanswer.com/uploads/LA/LawTalk/2012-6-6_17379_LawTalk.64x64.JPG LawTalk's Avatar

    LawTalk

    Attorney

    Satisfied Customers:

    4446
    I've more than 27 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
  • http://ww2.justanswer.com/uploads/RA/rayanswers/2012-6-7_23346_Untitled1.64x64.jpg Ray's Avatar

    Ray

    Lawyer

    Satisfied Customers:

    4030
    Texas Attorney for 29 years dealing in real estate
  • http://ww2.justanswer.com/uploads/PH/philip.simmons/2012-6-7_161915_BIGPhilipSimmons.64x64.jpg P. Simmons's Avatar

    P. Simmons

    Lawyer

    Satisfied Customers:

    2377
    12+ yrs. of experience including real estate law.
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    2355
    B.A.; M.B.A.; J.D.