LANDMARK PROPERTY LAW
FAQs
Frequently Asked Questions
1. What happens if I back out of a purchase—do I lose my deposit?
It depends on the contract and timing. If you cancel within contingency periods, your deposit is typically protected. Once contingencies are removed, your deposit may be at risk unless you have a valid legal basis to cancel.
2. What are contingencies and why do they matter?
Contingencies are conditions that must be satisfied before a sale is finalized (inspection, financing, appraisal, etc.). They are your primary protection as a buyer—missing deadlines or removing them too early can expose you to significant risk.
3. What should I look for in HOA documents before buying a condo?
Key items include financial reserves, pending special assessments, rules and restrictions (CC&Rs), ongoing litigation, and maintenance responsibilities. These documents can significantly impact both cost and lifestyle.
4. What is a special assessment and who is responsible for paying it?
A special assessment is an additional fee charged by an HOA to cover unexpected expenses or repairs. Responsibility depends on timing and contract terms—buyers can sometimes inherit these costs if not properly addressed before closing.
5. What is a dual agency and should I be concerned?
Dual agency occurs when one broker represents both the buyer and seller. While legal in California, it can create conflicts of interest. Buyers should fully understand how representation works and consider independent legal guidance.
6. What issues can come up with title or property boundaries?
Common issues include easements, boundary disputes, fencing discrepancies, unrecorded agreements, and zoning concerns. Standard title insurance may not cover all risks, so careful review is critical before closing.