Condominium Special Assessment

[sharic]

Virginia.
Synopsis: I Purchase a condominum in December, 2004. I receieved a disclosure packet on Dec. 17, 2004, and closed on Dec. 30th, 2004. On January 6th, 2005 I was informed by the HOA administration office, that there was a packet, containing the details for a special assessment, at the front desk. I was also infromed that they had finalised the details of the assessment on Jan. 3rd,2004. and I need to respond by Jan 25th, 2005 as to how I'm going to pay this assessment of over $11000.00. My choices were to pay the whole, or pay monthly installments.
- The seller did not mention anything about the special assessment.
- The association did mention anything before Jan. 6th, 2005, nor was anyhting in the disclosure packet.
Note: The disclosure packet was misleading, because it stated that they had adequate funds in reserve. And in the supporting documents for the special assessment, they stated the they knew as early as 2002 that they had a problem (they actually used the word "the reserve fund were inadequate". This is totally opposit to what was stated in the disclosure document I received. There was nothing in the disclosure documents that would cause anyone to inquire further as to the status of the reserve funds. As a mater of fact the statement in the disclosure document would cause you the be at ease, thinking everything was O.K.
I was able to abtain copies of the notices sent, as early as October, 2004, to the residents, informing them of the approx. amount the HOA was thinking about borrowing and how to approximate the amount each unit may have to pay.

I have, in writing, notified the HOA that I intend to contest this liability. But in the mean time I have had to sign document and have already started making monthly payments. If I did not agree to make monthly payments, I would have had to pay in full on Feb. 25,2005.

QUESTION: What if anything, can I do about this? I have already looked at getting a lawyer. But I could not afford this option.

I'm inclined to think that the intent of the Virginia code requiring HOAs to provide disclosure packet is to prevent this kind of thing from happening ie. protect buyer from being deceived by sellers. And because the HOA had send out several notices, informing owners of the approx. amount they would be liable for (yes the amount had not been finalized, but they had a pretty good idea, based on the notices they had sent as early as in October, 2004). That the HOA bear some responsibility in this case.

QUESTION: Does the HOA bear any responsibility in this case?

 

[Shel77]

Would the seller really have to disclose that there might be an assessment in the works? It was not finalized until after you closed. Did the disclosure packet that was misleading come from the seller or from the HOA? Unless the assessment was to be paid prior to the date of your closing I don't see how the previous owner could be forced to pay it. I understand that he should have known about this an it would have been nice of him to tell you that in the near future there may be an assessment. Hopefully you will get a response that will answer your question as to weather it is illegal or not. But I think since nothing was due prior to you closing there was no reason that he would legally need to disclose it.