Agent

Surprise loan irks condo buyer

Why HOA's payment demands may not be justified

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DEAR BENNY: I bought a condo just over a year ago. It was difficult to get a certificate for the sale, because there was no operating HOA. However, when the Realtor finally got it from an interim property manager, everything was clear; there were no encumbrances on the property. After I bought the property, a more active HOA began making decisions. I then found out that there was a large loan that was taken out for repairs on the property several years before I bought my condo. It was initiated and signed by the property manager at the time (who no longer lives there), and there was no HOA approval in writing. The loan was, in essence, a signature loan between the property manager and the bank. The property owners have been paying interest only on the loan, and now the principle is due. The HOA is asking each owner to pay his or her portion of the loan. Am I required to pay my portion of this loan since I was unaware of its existence when I bought the condo? If I am not r...