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Richard
Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 46518
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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Can a realtor or their client sue an HOA for putting a lien

Customer Question

Can a realtor or their client sue an HOA for putting a lien on a unit while it is listed? Loss of revenue libeling a property etc
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Richard replied 1 year ago.
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good afternoon. Can you elaborate on the basis for the HOA's lien claim? Does the HOA have a valid claim against the client?
Customer: replied 1 year ago.

740.00 plus in outstanding assessments some going back 2 years. According to our CCR it is a valid reason for a lien. We are a 4 plex built before 1995. The unit in question is up for sale and an owner of another unit in the 4 plex wants to put a lien on the one for sale. Our CCR gives her the right to do so.

Expert:  Richard replied 1 year ago.
Thanks for following up. There would be no cause of action for the realtor or the client because: i) the other owner has a legal right to place the lien; and ii) it in no way impacts the sale of the property. In many cases, when property is listed for sale, there are liens on the property...such as taxes, mortgages, HOA fees, etc. A buyer doesn't care about these existing before the sale. The only requirement that a buyer has is that they be paid and/or removed on the date of closing so that when title transfers to the buyer, the title is not encumbered with these liens. What will happen in this case is that the closing agent will simply pay the lien from the purchase price and cause it to be released so that title transfers without this encumbrance.



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Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 46518
Experience: 32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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Expert:  Richard replied 1 year ago.
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