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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 90264
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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In Maryland, if a property has been sold at foreclosure auction

Resolved Question:

In Maryland, if a property has been sold at foreclosure auction but a new deed has not yet been recorded, who is responsible for HOA dues in the interim? If significant assessments are added after the auction but before the Deed is recorded who is responsible?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking.

Immediately upon closing of the foreclosure sale, whether or not they recorded the deed, the new owner is liable for the payment of the HOA fees incurred from that date forward. They are not liable for any past due HOA fees prior to the date of the sale, that remains the liability of the prior homeowner. If any assessments or fees are incurred after the date of the sale, that is the liability of the new owner, even though the HOA may not know who that is and may send notice to the last recorded owner, that last recorded owner is not liable for those payments and they merely need to prove to the HOA they did not own the property as of the date of the assessment.



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Customer: replied 1 year ago.

That is great news. Is there a specific statute that addresses this? Thank you!

Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your response and follow up.

Like many things in the law, some things are based on statute, but most are just based on legal theory and practice. When that house was sold the deed transfered ownership immediately on the time of the sale and you no longer owned the house and cannot be liable for payment on something that accrued on the house when you did not own it. That would be like holding you liable for paying your next door neighbor's bill when you do not own their house. This is just a legal principle based on ownership and when it officially transfered.
Customer: replied 1 year ago.

Great. Thank you!

Expert:  Law Educator, Esq. replied 1 year ago.
Thank you very much. Please do not forget to click on excellent service feedback (if you have not already done so) as that is the only way experts get credit for spending time with you.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 90264
Experience: Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
Law Educator, Esq. and 6 other Real Estate Law Specialists are ready to help you

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