The Illinois Supreme Court has handed down some pretty goofy decisions on behalf of Homeowners Associations. I loved the one last year, the ruling that gave untrained, private HOA security guards police powers, the ability to pull over motorists and hand out tickets.
This latest one is a humdinger. It makes any new buyer of a condo responsible for all unpaid assessments, fines and legal costs run up by the previous owner IF it fails to pay the first monthly assessment on time. Once again, ask yourself what financial organization in its right corporate mind would invest in an HOA? And if you can’t find lenders, what does that do to property values?
(link to story on Illinois court decision)
I wonder how many buyers in this complex are conveniently NOT given notice their first payment is due.