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Maine Alliance for Road Associations

Need to inform real estate agent at property closing of defect due to unpaid association fees

  • 20 Apr 2016 5:23 PM
    Message # 3974625

    An  association wants to collect unpaid fees when the property is sold.  How should the association go about this? One claim for unpaid fees is recorded and others are not.

    Cliff Goodall: The real estate agent may not be helpful and may be hostile. However it is her/his legal duty under the Maine Real Estate Commission rules to disclose all major property defects to both the seller and buyer and unpaid road association fees are a property defect. The agent should be made aware of these bills.

    I suggest that you inform the real estate agent about both the recorded claim and the current bills.  They both burden the land and the title attorney needs to know about them and the closing agent will need to pay them all at the closing and you will need to sign for recording a release which the closing agent should prepare for you.  

    A “release” is also called a “discharge”. It is a simple statement ,signed, notarized and recorded, that says that the debt in the recorded notice of claim has been paid.  As in “release of claim”.

    The closing agent should prepare it, send it to you to sign and be notarized and when you return it, you will receive a check from the closing agent who will record it and pay the recording fee.





    Last modified: 21 Apr 2016 12:28 PM | Anonymous member

                            The Maine Alliance for Road Associations


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