Hi everyone. I live in Chicago and recently bought a condo in a 15-unit complex. According to the HOA records, I own 6.64% of the condo. My HOA dues are 6.64% of the total dues revenue collected by the HOA, and during attorney review prior to closing, the HOA disclosed to us that the % of common ownership is 6.64%.
However, when the building was originally built, apparently my unit had 7.246% ownership and this was the value that was recorded with the county. In 1990, the HOA had a vote to change some of the percentages and based on that, my unit's percentage changed from 7.246% to 6.64%. This change in percentage was not recorded with the county.
Fast forward to present day, I get my first property tax letter in the mail as the new owner of this condo, and I realize that the county is taxing me based on 7.246% ownership percentage of the complex, even though my HOA dues are based on the 6.64% value. I've been working with the HOA to see if they can record the new % numbers with the county, but the HOA's law firm did not give them clear direction on what to do, so they are still discussing how to proceed.
What should I be thinking about here? Here are some of my questions:
- What % of the common interest do I actually own? 6.64% based on the HOA records or 7.246% based on the county recordings?
- Why would the HOA's law firm not give clear direction on how to proceed? Shouldn't the HOA and county records be aligned to reflect the correct % of ownership?
- If the county records are the source of truth, then I worry someone could claim in the future that I am underpaying my HOA dues, given the HOA is only charging me based on 6.64%. The HOA told me they don't expect to collect any retro payments given all owners have agreed to the new split of HOA dues in 1990 but it still makes me nervous.
- If the HOA makes no change with the county, and I am taxed at the higher 7.246% through my ownership of the condo, do I have any recourse given that I was explicitly told in writing prior to closing that my ownership % is lower at 6.64%? This will lead to higher property taxes for the duration of my ownership so wondering if anything else can help rectify that for me (e.g., title insurance, seller's failure to disclose properly, etc.)?
Any other thoughts you all have?
However, when the building was originally built, apparently my unit had 7.246% ownership and this was the value that was recorded with the county. In 1990, the HOA had a vote to change some of the percentages and based on that, my unit's percentage changed from 7.246% to 6.64%. This change in percentage was not recorded with the county.
Fast forward to present day, I get my first property tax letter in the mail as the new owner of this condo, and I realize that the county is taxing me based on 7.246% ownership percentage of the complex, even though my HOA dues are based on the 6.64% value. I've been working with the HOA to see if they can record the new % numbers with the county, but the HOA's law firm did not give them clear direction on what to do, so they are still discussing how to proceed.
What should I be thinking about here? Here are some of my questions:
- What % of the common interest do I actually own? 6.64% based on the HOA records or 7.246% based on the county recordings?
- Why would the HOA's law firm not give clear direction on how to proceed? Shouldn't the HOA and county records be aligned to reflect the correct % of ownership?
- If the county records are the source of truth, then I worry someone could claim in the future that I am underpaying my HOA dues, given the HOA is only charging me based on 6.64%. The HOA told me they don't expect to collect any retro payments given all owners have agreed to the new split of HOA dues in 1990 but it still makes me nervous.
- If the HOA makes no change with the county, and I am taxed at the higher 7.246% through my ownership of the condo, do I have any recourse given that I was explicitly told in writing prior to closing that my ownership % is lower at 6.64%? This will lead to higher property taxes for the duration of my ownership so wondering if anything else can help rectify that for me (e.g., title insurance, seller's failure to disclose properly, etc.)?
Any other thoughts you all have?
Statistics: Posted by toyotafan_463 — Sat Jul 27, 2024 9:08 am — Replies 0 — Views 2