Buying A Home
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Walking at the 11th hour? WWYD?

We are about to close (Friday) on a great house. It's been a pretty stressful/bad  experience with difficult sellers who are angry that they "had" to accept our offer ($65,000 than original asking price 10 months ago)... even though I never saw a gun to their heads. Along the way, they were found trying to conceal an issue with the roof, sitting on documents/information for very long time, and their agent actually ammended the P&S after we had signed and tried to pass it off as legit to the sellers. We don't trust them very much, needless to say.

So my attorney finally gets the title across her desk on Friday at 4pm... come to find out the title is not clear, it is emcumbered by "Covenants" for the neighborhood. This is not a condo or even a gated community, there was never anything to indicate there would be any governing rules/regs for the home. We are leaving a condo where the condo regs have been stifling and area  big reason we are moving. DH is ready to walk. I am torn because 1) we love the house, 2) none of the regs seem like they will be a huge issue for us now or in the future, 3) we have a lease signed renters coming into our condo at the end of the month and will basically be homeless if we walk.  

DH feels like they have pulled one too many over on us and is worried that this will bite us in the a$$ down the road. I don't agree as most of the covenants are reasonable and seek to preserve the neighborhood. We are seeking consideration via our lawyer tomorrow and if they decline, DH is ready to walk on the deal. I am a wreck. Has anyone had anything like this happen?

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Re: Walking at the 11th hour? WWYD?

  • I think your husband is overreacting a little bit. If being part of an HOA was a dealbreaker for him, he should have confirmed the absence of restrictions before putting an offer on the property.  Was there a question on the sellers' disclosure regarding HOAs, covenants/restrictions, etc.?  It seems weird if there wasn't, although maybe those types of questions vary by jurisdiction.

    Anyway, I guess it depends on whether or not you feel like you can live with the restrictions.  Also, are HOAs normal in your area?  If so, you may have a hard time finding a property without one.  That is the case here -- I'd honestly rather not have one, but it's next to impossible to find houses that aren't part of an HOA, so I just live with it.  It's really not that bad.  If you think about it, how often are you going to do things that really involve the HOA?  Assuming the restrictions are normal things like paint colors, asking for permission to put in a fence, etc., you aren't going to do those things all that often so it's not as if the HOA will be a daily intrusion into your life.  Also, our city ordinances cover most of the HOA items anyway so even if our HOA didn't regulate certain things (for instance, putting your trash bins inside by the day after trash pickup day), the city has ordinances to cover it so you could still get in "trouble" for non-compliance.  Same with having old cars in the driveway, etc.

  • I've bought 5 houses, so I know all about the "OMG, I'm going to pull my hair out if ONE MORE THING...!!" that your DH is going through.  But he needs to step back and think logically. 

    1) Is there a better house available for the money in your desired location? 

    2) Are you getting a good financial deal on the house?

    3) If you took out the shadiness of the whole deal, would you still love the house?

    4) What specific provisions in the covenants does he object to?  Chances are, most of them are relatively benign - houses must be btwn X and Y sq ft, lawns must be mowed, no RVs parked for months on end.  Go ring doorbells in the neighborhood, tell them you're thinking of buying, and want to know about the HOA.  If you haven't heard about it or noticed it until now, I bet it's defunct or charges some tiny fee to keep the lights on at the community entrance.

    I think if he answers those questions logically, he'll calm down.

  • Yeah, my H is overreacting. It's not even a true HOA -- there are no fees and no real assocation. It's more covenants and no, the seller's did not disclose this on the disclosure  (nor did they disclose a roof issue that was revealed on the home inspection), hence our reluctance to trust the seller's. HOAs are NOT a big thing in our area at all and honestly we would never have thought to ask about it since they are really not prevalent other than in condo/townhome developments. My broker did not even know that this particular street (and that is all it is, one street!) had any covenants/regulations. My attorney did dig up that when these seller's bought the home, there ended up with a consideration (on the record for a title that is not free and clear due to encumberance) and she is willing to bet the same thing happened to them and they are now just continuing their sleazy ways. My H is very black and white and hotheaded-- he flew off the handle at yet another nondisclosure from sleazy seller's and needs to calm down.
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  • Did you have the house inspected? Is that how you found out about the roof?
  • Buy title insurance.
  • We did have the house inspected and our attorney already advised us to get title insurance. Our attorney is my best friend so she's on top of everything to try and prevent us from getting screwed.
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  • Exactly how are these covenants to be enforced if there is no HOA in place to do so? 

    image

    My favorite Cake Wreck ever.


  • imageRevJen:
    Exactly how are these covenants to be enforced if there is no HOA in place to do so? 

    This actually is true for a lot of neighborhoods where I live. HOAs are basically unheard of, but sometimes there are deed restrictions and things like that. They are enforced if you get a neighbor with a bug up their butt who complains to the city. Or if for some reason the city sees you are doing something against the "rules" for the area and they decide to care.

    Daisypath Anniversary tickers Image and video hosting by TinyPicImage and video hosting by TinyPic *This is not legal advice*
  • I can see that your husband is just feeling "done", and maybe just needs to cool off a little bit so he can then see things clearly.  I have found the house buying process to be so incredibly stressful, and I'm a therapist myself! ha!

    I'm not very familiar with covenants - but based on what you've written they sound like some parameters around what you can do with the property.  You might end up liking them if they are reasonable, if they keep people from building McMansions, etc.  But can you provide a little more insight into what some of the convenants are? 

    Your sellers sound like they suck, but you're almost there, and it sounds like you've done various things to protect yourself against potential issues (and the pp's gave good insight into that, too), so hopefully it will all work out in the end.  Good luck to you, and keep us posted!

  • At the last minute we found out our house has covenants too and coming from an HOA I was worried. Three years later they haven't bothered us once.  Most seem to apply to when the neighborhood was being built in the 60's all houses have to be back 20 feet from the road etc.   We pay 10 dollars a year to and have an annual BBQ in a local park and get monthly emails with updates on new businesses that have opened and anything else local that might be interesting. 

  • Our biggest issue is coming from a condo development where we are restricted in EVERYTHING and people run crying to the association at the drop of a hat. My DH is 100% against every living in this situation again. Most of the covenants are protective (no leaving waste around, no junk cars, excessive signage, etc) but there are a couple that are worded in a very grey manner regarding where vehicles may and may not be parked and what kind -- it does not specifically mention boats so our attorney things we'll be okay, but part of our move is so DH can get the fishing boat he's been dreaming of-- and we intent to park it in this "dead zone" next to the garage. He is afraid we will end up being told he can't have it. The other issue is that he is worried about is the statement of no trailers/motor homes parked at any time. He has family in the midwest who have wanted to take a cross country trip in their trailer/motor home and would stay with us for a little while.

     Our seller's (him in particular, wife seems okay) and the listing agent are very sneaky/underhanded and have ticked him off so bad he has lost sight of the "prize" and is flying off the handle. I'm trying to reign him in!

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