Original Message:
Re: BUYING DEVELOPER vs RESALE (typical scenario) (by KC):
bonniea16 states in relevant part: >> Then email the owner and find out if all MF's and say any refurbishment costs have been paid so that there are no surprises...<< ==============================================
While there is some good info and advice in some of the other input bonnie has offered, I must respectfully disagree with relying upon this (quoted above) suggestion.
Specifically, in my own opinion and experience, a buyer should NEVER rely solely upon the representations or assertions of a seller regarding the seller's account status. There could, in fact, be unpaid bills which the seller is "less than forthcoming" about. Worse still, there could be liens filed against the ownership which the seller somehow does not know about (or claims not to know about).
My alternative advice is to submit any offer with the clear statement that "the offer is made with the buyers' belief and understanding that there are no unpaid mf's or special assessments or other unpaid bills and no mortgages, liens or other encumbrances of any kind in place regarding the seller's current ownership." The buyer should thereafter rely ONLY upon a signed estoppel letter back from the resort to the closing company (not just emails or verbal seller claims in phone conversations with the buyer) as the only valid confirmation of the absence of any unpaid money. An attentive and competent closing company will get that signed "estoppel letter" directly from the resort, politely disregarding any and all verbal claims made by the seller.
This is not a criticism of bonnies' otherwise good input, but this one point needed some alternative, additional perspective. My input on this particular detail is based upon having encountered such "surprises" (i.e., seller misrepresentations) in the past. Been there, done that...