Who is responsible for unpaid condo assessments upon property conveyance?

Who is responsible for unpaid condo assessments upon property conveyance?

• A. The grantee and grantor
• B. Only the grantee
• C. The condo managing agent
• D. The local government

Answer: (A)

In the context of unpaid condo assessments during property conveyance, both the grantee (the buyer) and the grantor (the seller) share the responsibility. This concept is grounded in real estate law which recognizes that when a property is sold, any liens or assessments attached to the property may be passed along to the new owner. In many jurisdictions, including Hawaii, condo assessments that are unpaid at the time of sale can become the liability of the new owner, thus protecting the interests of the condo association in collecting dues for the common maintenance of the property. However, the seller, or grantor, remains liable for any undisclosed debts related to the property prior to the sale. This means that in practice, if a seller has accumulated unpaid assessments before selling a condominium, they may be pursued for those debts, but the new owner could also be held accountable for ongoing assessments that arise post-sale. This dual liability is why both parties are deemed responsible at the point of property conveyance. The other choices, such as only the grantee, the condo managing agent, or the local government, do not fully capture the shared responsibility that exists under typical property conveyance rules in real estate transactions. Thus, it's essential to understand the implications for

In the context of unpaid condo assessments during property conveyance, both the grantee (the buyer) and the grantor (the seller) share the responsibility. This concept is grounded in real estate law which recognizes that when a property is sold, any liens or assessments attached to the property may be passed along to the new owner.

In many jurisdictions, including Hawaii, condo assessments that are unpaid at the time of sale can become the liability of the new owner, thus protecting the interests of the condo association in collecting dues for the common maintenance of the property. However, the seller, or grantor, remains liable for any undisclosed debts related to the property prior to the sale.

This means that in practice, if a seller has accumulated unpaid assessments before selling a condominium, they may be pursued for those debts, but the new owner could also be held accountable for ongoing assessments that arise post-sale. This dual liability is why both parties are deemed responsible at the point of property conveyance.

The other choices, such as only the grantee, the condo managing agent, or the local government, do not fully capture the shared responsibility that exists under typical property conveyance rules in real estate transactions. Thus, it's essential to understand the implications for