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We gave a HOA owner that is delinquent on HOA dues and is the…

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We gave a HOA owner...
We gave a HOA owner that is delinquent on HOA dues and is the process of selling his unit.
Address: 740 N 32nd St Unit 4
Renton, WA 98056
King County
What steps do we take to block the sale until this dues are paid in full?
Submitted: 3 years ago.Category: Real Estate Law
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Answered in 1 minute by:
6/3/2015
Real Estate Lawyer: Ely, Counselor at Law replied 3 years ago
Ely
Ely, Counselor at Law
Category: Real Estate Law
Satisfied Customers: 103,583
Experience: Qualified attorney in private practice including business, family, criminal, and real estate issues.
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Hello and welcome to JustAnswer. Please note:
(A) This is general information and is not legal advice. No specific course of action is proposed herein. No attorney-client relationship or privilege is formed by speaking to an expert on this site. This is repeated in numerous disclaimers throughout the site. By continuing, you confirm that you understand and agree to these terms; and (B) there may be a slight delay between your follow ups and my reply while I am typing out my answer.
I am sorry to hear about this situation.
1) We - who? Do you represent the Association?
2) You stated "We gave a HOA owner that is delinquent on HOA dues and is the process of selling his unit." Gave what? The statement is not clear. What did you give the tenant?
This is not an answer, but an Information Request. I need this information to answer your question. Please reply, so I can answer your question. Thank you in advance.
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Customer reply replied 3 years ago
I am a member and the previous treasurer of the association. We have done nothing to date on this matter except make the realtor representing the sale aware of the delinquency. What does the remaining board need to do to block this sale. The person delinquent is the current Treasurer of our association. We are a small 6 unit condominium unit and have never encountered this situation before. What do we need to do? Notice in writing to him and the Relator? Forms?
Real Estate Lawyer: Ely, Counselor at Law replied 3 years ago
Thank you.
Let me ask you this - will you be forcing a foreclosure on the property due to unpaid HOA fees?
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Customer reply replied 3 years ago
no, It is not a huge sum of money, we just want to make sure it is pain upon closure or prior to closure of the pending sale. To put it bluntly the owner is untrustworthy and a few other things I will not put in writing at this time. He is the VP of Matthew Kidder, a large property management firm in this area and thinks he is above the rules. This stops now.
Customer reply replied 3 years ago
Ely are you still there?
Real Estate Lawyer: Ely, Counselor at Law replied 3 years ago
Yes, I am still here. My apologies for the wait; I am typing out the answer now...
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Real Estate Lawyer: Ely, Counselor at Law replied 3 years ago
The way an HOA can force fees is two ways:
1) Sue for the outstanding balance, or
2) Force a foreclosure based on the outstanding balance.
HOAs normally do the latter, as this is more effective at scaring the owner into compliance to avoid losing the property.
In cases of foreclosure, the mortgage lender (if any) stands to collect first, and anything left over is given to the HOA.
There is no way for the HOA to "stop" the sale unless it begins litigation either under (1) or (2) above. IF it does, it would file a lis pendens with the county under RCW 4.28.320 - see here. This tells any potential buyer "watch out - this property is under litigation! If you buy it, you may lose it anyhow."
Most buyers would immediately shy away from such a purchase.
Ergo, the best way is to consider litigation and the lis pendens that comes with it, which would basically disallow the owner to sell since most buyers would shy away.
NOTE that even if he does sell, the past due fees STILL REMAIN and may be litigated. The new owner may have to end up paying them.
I hope this helps and clarifies. Gentle Reminder: Use the SEND or REPLY button to keep chatting, or please rate when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of the top three faces/stars and then SUBMIT, as this is how I get credit for my time with you. Rating my answer the bottom two faces/stars or failing to submit the rating does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith.
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