Tag Archives: purchaser

How to tell if a home is part of an HOA

Mike HunterQ: I owned a condominium and then a house that both had homeowners’ associations. Rules were not enforced, many owners were delinquent with their payments, and it was unpleasant – especially with the section where my house was. I sold both of them and am looking to buy a house that is not part of an HOA. At what point is a real estate agent, or the owner if the house is for sale by owner, required to tell me if the community has a mandatory HOA? When I am told there is none, can I ask for it in writing? Is there some way I can check on my own to verify there is no HOA before I go look at a house?

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Recent New York Times Article on Sales Contracts

    This is a very interesting article on the effect of the Interstate Land Sales Full Disclosure Act (Act) on a recent luxury condo purchase. According to the Act, any development with 100 or more units must produce a purchase contract in a form that can be filed in the city registry prior to executing the contract. 15 U.S.C. § 1404(c) provides: “In the case of any contract or agreement for the sale or lease of a lot for which a property report is required by this title and the property report has not been given to the purchaser or lessee in advance of his or her signing such contract or agreement, such contract or agreement may be revoked at the option of the purchaser or lessee within two years from the date of such signing, and such contract or agreement shall clearly provide this right.”

    A federal judge in Manhattan determined that because the agent of a luxury condo building did not comply with the Act, the buyers were entitled to rescind their contract and get back their $510,000 deposit with interest. This decision comes as a shock to many developers and agents nationwide.

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