Who Owes HOA Dues?

Question:

My client purchased a home in September, 2014, and recently received a bill for the Home Owner’s Association (HOA) dues for the entire 2014 calendar year.  Do the sellers have any responsibility to pay all or part of this 2014 HOA bill?

Answer/Recommendation:

Hopefully, the closing attorney correctly prorated HOA dues on the HUD and collected from sellers the portion of HOA dues owed by sellers for 2014.

If the closing attorney did not collect the sellers’ portion of 2014 HOA dues, then sellers may still not be “off the hook,” so to speak, for 2014 HOA dues.

If the parties used the Louisiana Residential Agreement to Buy or Sell, then according to lines 90-98 of said Agreement,

“….dues owed to homeowners associations…..shall be prorated through the act of sale…….Seller shall pay all previous years’ taxes, assessments, condominium dues, and/or dues owed to homeowners associations and the like. All special assessments bearing against the Property prior to Act of Sale, other than those to be assumed by written agreement, as of the date of the Act of Sale, are to be paid by Seller.”

Thus, sellers are still contractually obligated to pay their portion of 2014 HOA dues.

It is recommended that the buyers’ agent contact sellers’ agent and request sellers forward the appropriate amount owed by sellers for 2014 HOA dues.

For any questions associated with HOA dues, please contact me at rye@tutentitle.com.

H.L. “Rye” Tuten, III, is a Title Attorney/Real Estate Closing Attorney and Owner of Tuten Title & Escrow, LLC. Formerly assigned by RICE Insurance to defend real estate agents throughout Acadiana, much of his more than nine years’ litigation experience is with real estate concerns.

The information contained herein is simply for informational purposes only and not intended to provide legal advice or create an attorney-client relationship.