HOA Fees, Taxes and Title Companies

Kimberly from Altamonte Springs purchased a home in Longwood in February and was told the HOA dues were paid up until July. She has now received a bill in the mail for HOA dues and when she questioned the bill she was told the error was a transfer fee. Her question for Robert Palmer is if the title company is responsible for rectifying the issue.

Title companies are third party companies that ensure the title and that everything is up to date and paid. They are also responsible for disbursing the funds. A majority of time, title companies are chosen by the seller. They may not be look out for the buyer as much as is expected. A title company should issue you out a title insurance policy and that policy states that up to the date of closing everything is paid and up to date. That means there are no outstanding taxes that you donâ??t know about, country leans, ordinance violations or HOA fees. If any of these items come out later as being unpaid, the title company is responsible for making it right for you. In the case of taxes, the title company has to try to split the tax bill between the buyer and the seller. If the taxes end up being calculated incorrectly, the title company is where you would go to rectify the incorrect tax calculation.