HOA Dues vs. Maintenance Fees

[Bearbacker]

As I've posted on a few other threads, I'm in the process of purchasing an interest at Valdoro resale. It's an even year interest, purchased by the seller from Hilton in 2007. At the time of purchase, Hilton agreed to credit them for the first year's maintenance fee, which would have been this year. I have spoken to the seller and she verified that they did receive the credit and the maintenance fee is paid up. Maintenance fees are approximately $900.

I just received my estimated closing settlement statement from the title company, and it shows that I am to pay "2008 HOA Dues" in the amount of $1,785.

Are HOA Dues something different than, and in addition to, maintenance fees? This caught me completely off-guard.

 

[Bearbacker]

Update: the woman at the title company just emailed and asked if I will be "taking occupancy" this year. I responded that I didn't quite understand what she was asking but if she meant closing on the purchase, then yes. If she meant using my points and staying at the resort, then most likely no--I will probably roll the points into 2009. She then responded by saying "I am adjusting the HOA dues to reflect ownership in 2009. What I meant previously was, when will you actually occupy the unit." She included a revised statement with the $1,785 HOA dues removed.

I'm totally confused now. I just spoke to the seller and she is as well. She has no idea what the $1,785 could be, and neither of us can figure out what the line of questioning about "taking occupancy" means and why it would make a difference when we actually use the unit as to whether or when this fee (whatever it is) would be paid. We will be calling the title company tomorrow to try to clear this up.

 

[Bill4728]

... and neither of us can figure out what the line of questioning about "taking occupancy" means and why it would make a difference when we actually use the unit as to whether or when this fee (whatever it is) would be paid.

Most of the time, the person using the "week" or points that year, pays the MFs or HOA fees that year ( even if you're banking points till next year) . So if you aren't using the week/points this year, the seller would have normally pay the MFs. ( but as you said, HGVC paid the 2008 fees for the seller when they bought in 2007) The title company was likely just following a check list of things they are expected to ask? Like "will you be using the unit this year?" to determine if you the buyer should be paying the seller back for the MFs.

Since you will not get more weeks/points till 2010 (with your EOY purchase) you shouldn't get billed till late 2009 for the 2010 fees.

No idea why the title company was asking about $1800, but maybe confused about eoy vs twice a year ownerships.

 

[Talent312]

AFAIK, there is no such animal as "HOA Dues" for Valdoro. You may have to pay HGVC membership dues, but its nowhere near that amount. I was going to suggest that you ask to see the documentation on which it was based, like an estoppel letter.

She may have assumed that there were two years of MF's owed and that you were taking subject to them. But now she realizes that she was in error, that the seller is liable or that the seller owes nothing. The parties often think that the title-people know what they're doing, but errors in closing statements are more common than many title companies and R/E attorneys will ever admit. Both of you have the right to insist on changes if you find mistakes.