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September 11, 2018 • Stay Connected!
         


QUESTION:  I represented a buyer for a condo and the transaction closed three months ago. Buyer just received a Notice of Annual Payment Due from the City, for the amount of $1,129.43. It was for the 7th annual payment for financing the construction of a roundabout. The invoice says the Term is 15 years and to pay off the payment in full would be $7,519.43. That means the seller had made 6 annual payments. The "Charges and Assessments" provision, line 13, on the Form 28 Purchase and Sale Agreement, was checked "assumed by Buyer". We knew there was a sewer capacity charge and my buyer was going to be taking over those payments, after the sale. On the disclosure statement the seller checked that there were sewer capacity charges but under the Homeowner Association section (question 6C), he checked No to any pending special assessments. What options does my seller have?



ANSWER:   The reference to pending special assessments in question 6(c) of Form 17 is a reference to assessments charged by the HOA. The City does not levy "HOA special assessments". Nevertheless, the City's charge does qualify as a "charge or assessment" as that term is defined by the Form 28. Buyer's agreement to "assume" "charges and assessments" probably eliminates any claim buyer would otherwise have against seller. Perhaps buyer can make an argument that seller should have disclosed these funds owing to the City. There is additional opportunity on the Form 17 for seller to disclose a payment obligation such as this. The Hotline lawyer cannot assist buyer with that analysis. Broker should advise buyer, in writing, to seek legal counsel. This question illustrates why a buyer should ALWAYS mark the "Charges and Assessments" box as "prepaid in full by seller at closing" and if there are specific charges or assessments that buyer is willing to assume, those should be addressed in a separate provision by which buyer specifically agrees to assume those charges or assessments only.
 

 

The Legal Hotline Lawyer does not represent Washington REALTORS or its members. To browse through our database of past Q & A's, visit www.warealtor.org. Attorney Annie Fitzsimmons writes the Legal Hotline Question and Answer of the Week. Please submit questions to legalhotline@warealtor.org . Please tell us your NRDS number when you e-mail the Hotline with your question.



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  VHT Studios


 
 
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Facebook Lists Are Going Away
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What is a Chatbot and how do you create one?
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Primary Mortgage Rates Survey
(updated every Thursday)  Source:  Freddie Mac
 
  September 6, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.54%  3.99%  3.93%
 Fees & Points  0.5
 0.4
 0.3
 Margin  N/A  N/A  2.77



 August 30, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.52%  3.97%  3.85%
 Fees & Points  0.5
 0.5
 0.3
 Margin  N/A  N/A  2.77



 August 23, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.51%  3.98%  3.82%
 Fees & Points  0.5
 0.5
 0.3
 Margin  N/A  N/A  2.75



 August 16, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.53%  4.01%  3.87%
 Fees & Points  0.5
 0.5
 0.4
 Margin  N/A  N/A  2.75



 August 9, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.59%  4.05%  3.90%
 Fees & Points  0.5
 0.5
 0.3
 Margin  N/A  N/A  2.76



 
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Date Class Location CE  
13-SEP  2018 Fall Business Symposium SeaTac 7.5 More info...
14-SEP  The Hotline Vs. The Bottom Line Gig Harbor 7.5 More info...
17-SEP  Principled Negotiations Olympia 7.5 More info...
18-SEP 1031 Exchange BasicsYakima3.0More info...
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02-OCT NAR Code of EthicsWenatchee3.0More info...
02-OCT NAR Code of Ethics Olympia 3.0 More info...
04-OCT Tech Edge SeaTac   More info...
18-OCT  NAR Code of Ethics Webinar Live Webinar 3.0 More info...
23-OCT Draft Like a LawyerTukwila15More info...
24-OCT NAR Code of EthicsPuyallup3.0More info...
25-OCT NAR Code of EthicsLive Webinar3.0More info...
     
     

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