HOA Violations on Auction Property

[Saji Ijiyemi]

I'm closing on an REO/Auction property next week. The bank just notified me that there is an HOA violation on the property -- a tree was uprooted and needsbto be planted back -- they want me to sign a form to say I am aware of the violation and would be bearing the responsibility to plant the tree back. They said they've warned that the property is sold AS IS WHERE IS. My question is 1) Is this a deal breaker? 2) How much does it cost to plant a tree? 3) Someone suggested I called the HOA company to send a fine for the violation to the Closing Company... and that way the Seller/Bank will be responsible for the Violation... Can I do that? 4) Can I refuse to take the responsibility for the tree?

[Greg M.]

1) No way is this a deal breaker. It's a tree.

2) Without knowing what type of tree and how old it must be, there is no way to estimate the cost. Perhaps $30 or perhaps $500,000. Call up the HOA and ask them what type of tree and how old it should be. Chances are it's going to only be a few hundred dollars. They may even be willing to do the work for you and just send you a bill.

3) Sounds pretty clear that the bank is not going to fix the problem. This is fairly common. They don't have the people in place to comply with all the R&R so they pass it on to the end buyer. This isn't a fine that can be paid in escrow, the HOA wants a tree planted. Besides, who says if it were a fine that the bank would pay it? I've seen them require the buyer pay all outstanding fines.

4) You absolutely can refuse to take responsibility for the tree. Let them know you're a Sovereign Citizen and you don't recognize their authority! Please update us on how that goes. :)