Do you know who is responsible for refunding the estoppel fee if the deal doesn't close?.....The homeowner!
"if the certificate is requested in conjunction with the sale or mortgage of a unit but the closing does not occur and no later than 30 days after the closing date for which the certificate was sought the preparer receives a written request, accompanied by reasonable documentation, that the sale did not occur from a payor that is not the unit owner, the fee shall be refunded to that payor within 30 days after receipt of the request. The refund is the obligation of the unit owner, and the association may collect it from that owner in the same manner as an assessment as provided in this section. The right to reimbursement may not be waived or modified by any contract or agreement."
This means the Association "may collect" the fee from the owner/seller if the closing does not take place and a third party sends a request for reimbursement to the Association within the time-frame specified above.
When an Association collects will depend on the Association and what procedures they actually implement. Please note that the Association is not required to collect the refund of the estoppel fee from the owner/seller, however, they may collect it. The statute states that the Association "may collect" the refund as an assessment. I
If the seller is delinquent, arguably it may be added as another assessment. It will depend on the Association, whether they want to collect the refund as an assessment, and what procedures they actually implement.
Please note the right to reimbursement (of the estoppel fee) cannot be modified or changed by a contract.
NOW YOU KNOW!!!!.....
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