Real Estate Law
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Hi - my name is ***** ***** I'll be glad to assist.
Does the contract or any purchase agreement say anything about these liens or that you will assume any HOA lien, etc.?
If the contract states anything about this, you would be bound by those terms. Otherwise, you could likely cancel the contract based on the fact that you can't obtain a clear title. BUT, you really need to have a local lawyer read the paperwork and make sure you state legitimate grounds to cancel in order to get your deposit back and avoid losing/forfeiting it.
Ok. In that case, you'll need to see whether the lien will follow the unit or whether it will follow the previous owner. You may have to get a lawyer to contact the Condo Assn. and find out what the bylaws say about condo liens, etc.
If the lien attaches to the property, then you'd need to see what you could work out with the association to resolve the debt. As for the sale, it's not likely that this would be grounds to cancel the purchase because you are likely going to be obligated to have checked the lien situation out before making the bid.
Hopefully, the lien attaches to the person and not the property......and if not, the association would likely be willing to work something out with you to resolve the debt.
Please let me know if you have any additional questions. Also, please take time to positively rate our conversation so I ma receive credit for assisting. Thanks again!
No, the appraised value has nothing to do with the liens that encumber the property....the appraised value solely deals with what the property value is irrespective of debt.
In other words, the fair market value obtained by an appraisal wouldn't be affected by the liens against the property....in fact, an appraiser likely would not check for financial liens when conducting the appraisal.
You definitely should consult with the condo association yourself or through a lawyer to find out the status of this lien and whether it attaches to the property or to the individual and then decide how to proceed.
Thanks again for your question and if you need anything further, please let me know.