Real Estate Law
Have Real Estate Law Questions? Ask a Real Estate Lawyer.
Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.
If you aren't actually a party to any litigation, then no, it wouldn't affect your title or create any type of encumbrance on your property so as to prevent you from selling. If the owner is suing the HOA, then if they win, the HOA's insurance company would presumably have to pay out any recovery for damages.
So it wouldn't send up any red flags to the buyer's lender about the property as it is unlikely that they would even become aware of it since it doesn't directly affect your property or title.
As an aside, I used to be a closing attorney for 4 different lenders and have practiced real estate law for over 15 years..