I have put out a conditional offer (subject to status certificate and property inspection) for a condo townhome property. We’ve included a special assessment clause in our offer stating that the Seller is responsible for any existing or future special assessments before closing. Now the Seller has countered by removing that condition.
This looks sketchy to me. My realtor says that even if the Seller is trying to hide something, we would find out about any existing special assessments from the Status Certificate, and they advise moving forward without the clause. What do you think I should do?
I wouldn’t agree to a blanket clause for all future assessments. If a week before closing the HOA announces a major assessment, the seller should have disclosed that. It’s best to negotiate based on the actual situation rather than trying to predict every possible scenario.
I agree. The Seller should disclose any discussions about proposed assessments. If something comes up before closing, you can use it to negotiate the purchase price.
In Florida, the disclosure of potential assessments is mandatory for a year prior if the COA contemplates one. The assessment could vary greatly in amount.
What qualifies as a special assessment? Sellers often want to avoid being nickel and dimed for minor issues. Consider countering with a clause focused on serious safety concerns instead.
Have your agent contact the HOA and ask if there are any assessments currently under consideration. You can also request the minutes from past meetings.