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HOA holding escrow for repairs..common

Started by LuckyD • 13 replies • 1914 views

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LuckyD (Pennsylvania)
Posts: 12
Posted:
appt to see atty on wednesday but i cannot wait until then, im curious to know how common it is for the HOA (PA resident) to hold money for repairs instead of a title company. i never heard of this. 3 HOA violations are on the books and realtor says HOA will hold the money.

i greatly dislike this idea. hope the atty agrees.
KerryL1 (California)
Posts: 14,550
Posted:
Have no idea if it's common.

Haven't been following your escrow topic, Lucky. Are you saying that the seller gave funds to the HOA (an officer? a property mgr.?) that are sufficient to make the repairs that the HOA insists should be made?
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By LuckyD on 01/12/2015 5:10 PM
appt to see atty on wednesday but i cannot wait until then, im curious to know how common it is for the HOA (PA resident) to hold money for repairs instead of a title company. i never heard of this. 3 HOA violations are on the books and realtor says HOA will hold the money.

i greatly dislike this idea. hope the atty agrees.


Unusual. HOA is not an independent third party. If they say that what was done isn't up to par, what happens to the escrowed funds? Under what circumstances do the funds get released to you?
Sikubali jukumu. Read all posts at your own risk.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By LuckyD on 01/12/2015 5:10 PM
appt to see atty on wednesday but i cannot wait until then, im curious to know how common it is for the HOA (PA resident) to hold money for repairs instead of a title company. i never heard of this. 3 HOA violations are on the books and realtor says HOA will hold the money.

i greatly dislike this idea. hope the atty agrees.


Unusual. HOA is not an independent third party. If they say that what was done isn't up to par, what happens to the escrowed funds? Under what circumstances do the funds get released to you?
Sikubali jukumu. Read all posts at your own risk.
JanetB2 (Colorado)
Posts: 4,219
Posted:
I agree with NpS ... Generally any escrow money is held and distributed by a third party who has no vested interest in any outcome.
LuckyD (Pennsylvania)
Posts: 12
Posted:
Quote:
Posted By NpS on 01/12/2015 5:18 PM
Posted By LuckyD on 01/12/2015 5:10 PM
appt to see atty on wednesday but i cannot wait until then, im curious to know how common it is for the HOA (PA resident) to hold money for repairs instead of a title company. i never heard of this. 3 HOA violations are on the books and realtor says HOA will hold the money.

i greatly dislike this idea. hope the atty agrees.


Unusual. HOA is not an independent third party. If they say that what was done isn't up to par, what happens to the escrowed funds? Under what circumstances do the funds get released to you?

well since the realtor is a (insert bad word here), i havent seen any docs about anything. just what the realtor has said, and he said HOA will be holding seller funds. i had the above questions and even more. so im pretty sure setttlement will be pushed back yet at again until this is fought out. why the realtor waited until 5 days before closing to do this is beyond me. they knew about these repairs for a month. total jerk.
JonD1
Posts: 2,350
Posted:
Quote:
Posted By LuckyD on 01/12/2015 5:10 PM
appt to see atty on wednesday but i cannot wait until then, im curious to know how common it is for the HOA (PA resident) to hold money for repairs instead of a title company. i never heard of this. 3 HOA violations are on the books and realtor says HOA will hold the money.

i greatly dislike this idea. hope the atty agrees.

Perhaps, it might help if you provided details.

What is your role in all of this? Buyer ?, Seller? Other?

Are they planning to hold your money?

Do you have an attorney handling closing?

If you are the owner perhaps you can get an explanation from the board or property manager.

Is this your agent who you seem to find so much fault with?

Hopefully, you will soon be getting this all explained to you to your satisfaction.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By LuckyD on 01/12/2015 6:46 PM
Posted By NpS on 01/12/2015 5:18 PM
Posted By LuckyD on 01/12/2015 5:10 PM
appt to see atty on wednesday but i cannot wait until then, im curious to know how common it is for the HOA (PA resident) to hold money for repairs instead of a title company. i never heard of this. 3 HOA violations are on the books and realtor says HOA will hold the money.

i greatly dislike this idea. hope the atty agrees.


Unusual. HOA is not an independent third party. If they say that what was done isn't up to par, what happens to the escrowed funds? Under what circumstances do the funds get released to you?


well since the realtor is a (insert bad word here), i havent seen any docs about anything. just what the realtor has said, and he said HOA will be holding seller funds. i had the above questions and even more. so im pretty sure setttlement will be pushed back yet at again until this is fought out. why the realtor waited until 5 days before closing to do this is beyond me. they knew about these repairs for a month. total jerk.


Realtor works for the seller. Not someone you should rely on.

You can refuse to let the HOA hold escrow funds.

Talk to lawyer.

Sikubali jukumu. Read all posts at your own risk.
LuckyD (Pennsylvania)
Posts: 12
Posted:
called title company and here they wouldnt even want this escrow. its just HOA rules that were broken, not township laws or rules. but she said they key is to get more money than you need and make sure we are signing that the work is acceptable before any money is approved. so the realtor better have the document to day so we can see atty tomorrow or this is definitely postponed. i still think they are hiding something. why wait this long to show us estimates and escrow docs

then again the realtor took over 7 days to respond to our last request, what a DB
GlenL (Ohio)
Posts: 5,491
Posted:
Lucky you and your mom should run not walk away from this "DEAL" I don't care how potentially perfect a home it might be. Is it the only one for sale in that HOA? As you were advised in your other thread and again here. GET AN ATTORNEY!!!! The realtor no mater how friendly s/he is is not on your side nor can they offer legal advice and since this is a cash deal, once the papers are signed the only recourse will be lot's of expensive litigation.
Studies show that 5 out of 4 people have problems with fractions
LuckyD (Pennsylvania)
Posts: 12
Posted:
realtor almost hit me tonight after asking him to provide escrow docs..in my face with finger and everything. class act. i think he has issues. wouldnt back up when i told him he better back up.

recommended course of action? calling the broker tomorrow ..should be fun call
GlenL (Ohio)
Posts: 5,491
Posted:
Lucky why are you asking for recommendations? You or your mom are so enamored with this home your motto should be "Damn the torpedoes, full speed ahead." I wish you and your mom the best in this venture but I fear if it were a movie the title would be "The Money Pit."
Studies show that 5 out of 4 people have problems with fractions
JohnB26 (South Carolina)
Posts: 1,001
Posted:
to quote P. T. Barnum:

There is a sucker born every minute, and two to take him.

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