Agent

Condo buyer hit with surprise lien

Who is responsible for $600 in unpaid association fees?
Published on Mar 21, 2007

DEAR BOB: In February I closed on the "as is" purchase of a condo, which was a foreclosure sale by Fannie Mae. At the closing, I was surprised by a $600 debt due to the condo homeowner's association. I thought Fannie Mae should have paid this. The lawyer who handled the closing agreed with me, but it had to be paid or I wouldn't receive title. I reluctantly paid. When I protested to the condo association, I was told to hire a lawyer because it is my responsibility to pay. What is your opinion? --Ken M. DEAR KEN: When buying an "as is" foreclosure property from the foreclosing lender, which was Fannie Mae, it is customary to deliver marketable and insurable title. Frankly, I am surprised Fannie Mae refused to pay that $600 condo association lien. The sale term "as is" refers to physical condition, meaning the seller will not pay to make any repairs. It does not mean the seller will surprise the buyer with undisclosed liens that the seller refuses to pay. Purchase Bob Bruss ...

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