Ok, I know it's been a while since I updated on the condo. When I last updated you,
Pulling my Hair Out, we had our inspection and was in the process of getting our loan documents squared away. Let me give you a little back story. On February 5th we put an offer in on the condo. On the 6th we received an email stating that multiple offers had been submitted and to submit our "Highest and Best" offer. So we re-evaluated our offer, increased it and re-submitted. Then we waited. On February 14th we received a counter offer from the bank asking us to use their financing, which we declined. (we thought we lost it) On February 17th our offer was accepted! Yay. Our Realtor came over that night and we signed all the documentation for a offer acceptance submission on the 18th of February. We scheduled our inspection for the 19th. Ok now we are caught up.
Per our contract the Escrow company was supposed to order the HOA and CC&Rs within 3 days of acceptance. Now I know that means they should have been ordered on the 20th, but we live in lala land so if we don't include weekends that makes it February 22nd. We went on our merry way with the inspection thinking everything was fine and dandy. There were some issues in the inspection that we wanted the bank to correct before hand, the smoke detectors did not work and by California State Law you MAY NOT sell a property without this being corrected, so we were fighting over that. I know not a big deal, but we wanted to make sure we were doing things the legal way. We were in process of getting everything sorted out that was needed for the loan so we were distracted, but always in the back of our head thinking "Hm, I wonder when we are getting our docs?" On February 25th we asked our Realtor when she thought that we would be receiving those documents, because in our contract we had a 17 day contingency where if their was anything that was unsettling to us we could pull out with no penalties. I was consumed with wedding and baby shower tasks, see
here and
here, so I didn't really pay attention to the days as they clicked by. However on March 3rd I emailed our Realtor to find out what was going on. She informed me that escrow did not order the documentation until March 2nd!
RED FLAG ALERT! That is 13 days past acceptance of offer! I was LIVID! Who the hell do these people think they are! She tells me that it usually takes 5-10 business days to receive said documents and she will let us know when they are in.
So now we are impatiently waiting because our contingency period is fast approaching a close! Our Realtor emails us on Wednesday the 9th and says that they received the docs and we should get them on the 10th. Now lets see about this math....our 17 day contingency began on Feb 17th so it was up on Monday March 7th. There is a clause that we have time to review these documents regardless of when we received them to review. (we have no control over when the escrow company orders them) So Darin and I open them and right on top is a paper-clipped set of documents from the Association. A bill from John Murray plumbing for services rendered on a leak, another bill for HOA dues and a disclosure document regarding the leak. We were informed of a leak, but never to what extent of the damage. I wont go into depth, but apparently in October of 2010, a leak from the hydronic heating system had gotten so bad that it came down the walls, flooded the floor, soaked through the subfloor, and continued down through the ceiling and walls of the condo below. I states that the unit below contacted the listing agent (the bank owned the property at this time) to have them come out and see what the problem was. (Are you following me, the listing agent knew this in Oct and we didn't get a full disclosure until now) It goes on about whether or not it was a roof leak and so on, but at the bottom of the description date March 8, 2011 stated:
To date, the Association has not been notified that the water intrusion and damage caused to Unit 83 or the common areas between Units 83 and 84 by the leak in Unit 84 has been fully mitigated, nor if the cause of the water leak in Unit 84 was determined, repaired and poses no further risk.
The Association charged-back the cost of the emergency inspection by John Murray Plumbing to the Unit 84 Homeowner account (copy of Invoice attached); at this time, the Association has not levied a violation fine for this violation, but reserves the right to do so.
So, they are basically saying "Your guess is as good as mine whether or not it's fixed. Good luck!" We also don't know if the subfloor was inspected, how damaged it was and if there was mold testing and what risk is posed by this issue. Also states that we has the new homeowners will be responsible for the violation fines if they choose to.
RED FLAG ALERT! Then it continues on to state:
Per the CC&Rs any costs to repair damage caused by a homeowner to the common areas, exclusive use common areas or to another Unit, whether deliberate, unintentional or through negligence, is the sole financial responsibility of the Homeowner who caused the damage and is not cured by title transfer.
At any time, the Association may exercise its right to effect and repairs necessary to the common areas damaged by the Unit 84 homeowner and will charge any and all costs incurred, in addition to violation fines to the Unit 84 Homeowner account. If repairs to the common areas are made by the Unit 84 Homeowner or their Agent, the Association will exercise its right to inspect and approve any and all repairs prior to their completion and may levy violation fines until they are deemed compliant.
The Association has the right to inspect and approve any and all changes and/or repairs made to the common areas to ensure compliance with the CC&Rs. Any homeowner who changes and/or damages and/or effects repairs to exclusive use common area or the common areas must obtain Association inspection and approval to ensure compliance and bears the sole financial responsibility for any changes and/or repairs required, in addition to any violation fines levied. At its discretion, the Association may effect any repairs necessary and charge any and all costs incurred to the responsible Homeowner account; and change and/or repair to exclusive use common area or the common areas that is not approved by the Association is a violation, subject to violation fines and repair costs.
Ok, what this long winded legal jargon is saying; we would be financially responsible for any and all damage that was caused to the adjoining unit and any and all violation fines per the CC&Rs. We are also legally responsible if the adjoining unit wanted to take us to court for the damage.
RED FLAG ALERT! We continued to delve further into the financial statements for the property and those were not good either. Monthly expenses in the red every month, things needing to be fixed that they can't due to lack of funds. They increased HOA dues in February of last year and again in January of this year to a total of 25% increase over 1 year. Tenants not paying their HOA fees.
RED FLAG ALERT! We only scratched the surface of what they gave us, but what we found was completely unsettling. Like they say, you are an undesirable candidate for us! We contacted our Realtor and she is drawing up paperwork for us to withdraw from escrow. We are very disheartened, but we did not want our first home to have that many red flags. With it being a foreclosure, the property is sold as is and we would have to take all this bad. As much as we would like to own a home, this is not something that we signed up for. Our decision was made as a couple, with much advise from wise people. Our home will come eventually.