I have noticed a lot of foreclosed property for sale in which the listing agent will put a comment in MLS that buyer is responsible for HOA resale Package. I often wondered was this legal? In regular sales sellers are responsible for resale package according to the state law, but I was not sure if an exception was made for foreclosed properties. So I decided to go to the source. First I read the law as it pertains to HOA resale package, the law states sellers are to provide HOA resale package to buyers at or before entering into a contract or within 20 days of contract acceptance.
Md. REAL PROPERTY Code Ann. § 11B-106
"This sale is subject to the requirements of the Maryland Homeowners Association Act (the "Act"). The Act requires that the seller disclose to you at or before the time the contract is entered into, or within 20 calendar days of entering into the contract, certain information concerning the development in which the lot you are purchasing is located. The content of the information to be disclosed is set forth in § 11B-106(b) of the Act (the "MHAA information") as follows: (The notice shall include at this point the text of § 11B-106(b) in its entirety).
The law further states buyers can cancel contract and be entitled to their deposit back within 5 days of getting the resale package.
“If you have not received all of the MHAA information 5 calendar days or more before entering into the contract, you have 5 calendar days to cancel this contract after receiving all of the MHAA information. “
After reading the law I did not see any exception for sellers of foreclosed properties, but I’m not a lawyer so maybe the law is interpreted in another way, so I emailed the state Attorney’s office to find out if sellers of foreclosed properties are responsible for providing HOA resale package. The answer is YES... sellers are responsible for providing the package no exception. So why are some listing agents purposely trying to break the law? Could it be that they don’t know? Or just assume the buyer’s agent and buyers are not knowledgeable enough to know that sellers are responsible for the package. Whatever the reasons are ignorance of the law is not an excuse. So agents next time you made an offer on property with HOA… demand that seller provide resale package for your buyer... it is the responsibility of the seller and they cannot purposely disobey the law just because they are corporate owner and if the listing agent raises any objection direct them to the state law and be ready to take it further. There are so many ways in which buyers are being taking advantage of because of the current market climate, asking them to pay for resale package is against the law in Maryland so educate yourself and stand up for what is right and rule of the land.
If you find yourself in a position like millions of other homeowners who owe more on their home then it's worth call this toll free number 24 hours a day and listens to the free recorded message to find out what you can do. This is a public service message.
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Keji Ogunleye, Your Real Estate consultant for Life
Are you struggling with your mortgage payment in Greenbelt, Fort Washington, Clinton, Bowie, Upper Marlboro MD.? Help is available. For a confidential analysis of your situation contact keji @ 301-613-2043 or Keji@metrohomesrealty.com.
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