HOA Budget Surplus

[Victor Saumarez]

This is a hypothetical question. Say you sell a condo and the HOA subsequently informed you that there was a budgetary surplus on the account. They email all homeowners that the surplus is to be credited to their accounts. Since the condo was sold and you no longer therefore have an account you can't receive the credit. Would you expect the HOA to send you a check, or is the new owner under an obligation to refund you once they receive the credit? I appreciate this may depend on where the condo is located.

[Erica Calella]

I don't think the new owner is under any obligation to refund anything unless its specifically documented ahead of the close. If the budget surplus is known at the time of the sale, then the seller may be able to get a pro-rated credit on the closing statement, but usually once the sale is done, it's done. I agree with you that this may not be common practice in different markets, my experience with HOAs is only in the state of NJ.