Agency
In Utah, a seller who owes HOA assessments at closing must:
ANegotiate with the HOA after closing
BPay outstanding HOA assessments at or before closing, as they constitute liens on the property✓ Correct
CTransfer the obligation to the buyer as part of the contract
DRequest a hardship waiver from the HOA
Explanation
Unpaid HOA assessments are liens on the property in Utah. Under the Utah Community Association Act, these liens must typically be satisfied at closing to provide the buyer clear title.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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