First of all, let’s make a premise regarding HOA fees, which are divided into ordinary management fees and extraordinary fees.
Ordinary management fees are related to the regular administration of the condominium, to the enjoyment and maintenance of the common areas of the building.
Extraordinary fees, on the other hand, refer to extraordinary maintenance of the building such as renovation or refurbishment of the facade and/or roof, elevator replacement, boiler replacement, etc., meaning all extra interventions in the common areas.
When purchasing a property, it is always advisable to check for any outstanding HOA fees not yet paid by the seller, especially if extraordinary maintenance works with considerable amounts have already been approved.
Who pays the ordinary fees?
By law, there is a “joint liability” between the seller and the buyer for the payment of fees related to the year when the ownership transfer took place and for those of the previous year. In fact, the administrator will seek payment from the new owner, who may then attempt to recoup it from the previous owner.
To avoid this situation, it is good practice to request from the seller, before the deed, proof that all HOA fees accrued up to that date have been paid, showing no outstanding debts toward the administrator. The administrator must provide the seller with a release letter.
Who pays the extraordinary fees?
The fundamental point is that the party responsible for paying HOA fees for extraordinary works is the one who was the owner at the time the works were approved. Therefore, payment is due by whoever owned the property at the time of the resolution approving the works, unless otherwise agreed between the seller and the buyer.
What obliges the seller to pay the extraordinary fees is the fact of having been a condominium owner at the time of the assembly approving the extraordinary works.
