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Responsibility for Past Delinquent Subdivision Dues

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Posted (edited)

I have a question on Subdivision Dues not paid by a previous home owner :

 

We purchased a property in a Subdivision currently run by the Developer and as yet not handed over to a HOA - the property was sold to us by one of the Developers Agents.

 

Prior to the sale closing we and our lawyers were assured by the Agent that all property taxes and Subdivision dues had been paid in full by the seller.

 

This has turned out not to be the case and now the Developer has presented us with a bill for 2 years of delinquent debt from the previous owners time in residence in this house.

 

Our own dues since we took up residence are paid up in full annually.

 

  • Are we liable for this debt ?
  • Is there somewhere in written or case law to cover this issue we can refer to ?
Edited by insite

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36 minutes ago, insite said:

Prior to the sale closing we and our lawyers were assured by the Agent that all property taxes and Subdivision dues had been paid in full by the seller.

This is the crux of the matter - how were you assured i.e. in writing? 

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Do your sale documents have a statement of property taxes and subdivision dues as at the time of sale included?

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The Agent gave us a verbal assurance when the sale was agreed that all dues were paid.

At the time of signing in our Lawyers Office the owner gave a verbal assurance to the Lawyers that all dues were paid - property tax documents were included in the sales documents.

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Just now, insite said:

At the time of signing in our Lawyers Office the owner gave a verbal assurance to the Lawyers that all dues were paid - property tax documents were included in the sales documents.

 What a Pity you had a lawyer that has not paid Due Diligence Insite, I honestly can not see this verbal conversation hold any water if it ever went to court 

 JMHO but we should always get written Agreements and Receipts for any cash handed over :thumbsup:

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Yes I agree Jack but what's done is done and I see no point in taking on the lawyer...........

The point now is to establish in law if one can be held liable for a debt incurred by another and if so where the relevant statute is set down enshrining this law

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8 minutes ago, insite said:

Yes I agree Jack but what's done is done and I see no point in taking on the lawyer...........

The point now is to establish in law if one can be held liable for a debt incurred by another and if so where the relevant statute is set down enshrining this law

Of course you are correct, but if it's just down to the financial aspect then I'd say it's not worth it - the fees for 2 years cannot amount to much?  Fair enough if you simply want to know the actual legal position.   

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You are right again - its not much money but I don't like being f*!%k over by these people who also at the end of the day never paid the agents commission either !

Last time I asked to lawyer he said we have no liability - I will need to do so again in some more depth as yes if I am liable to pay I want to see it in print somewhere.

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2 minutes ago, insite said:

You are right again - its not much money but I don't like being f*!%k over by these people who also at the end of the day never paid the agents commission either !

Last time I asked to lawyer he said we have no liability - I will need to do so again in some more depth as yes if I am liable to pay I want to see it in print somewhere.

I understand - nobody likes to be f*$@#d over.

Verbal assurances, whilst not as good as written obviously, do have some value so it's worth at least asking the question

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My thoughts are this :

If the debt applies to an individual then it cannot be passed on to another individual without due process.

If the debt applies to the property then the Developer needs to have some legal means to place a lien on the property by way of protecting his interest - no such rule appears to be in place here

If a seller gives erroneous information in front of a Notary Public and Lawyer surely that is fraud and the word of the NP would hold some considerable sway ?

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