Consumer complaint received 2016-08-05
Product: Mortgage — VA mortgage
Issue: Settlement process and costs — 
Company: Linear Title & Closing, Ltd (VA)

I purchased a townhome on XXXX XXXX 2016. Weeks after the closing, I found that the closing disclosure and settlement statement omitted {$860.00} in Homeowner Association ( HOA ) closing costs. There was no attempt to convey closing paperwork to the HOA as property ownership was transferred. I am currently liable for {$550.00} in closing costs that were never communicated in the closing disclosure or settlement statement. These outstanding charges would have likely been paid by the seller if they were appropriately communicated prior to closing. 

On XXXX XXXX, the seller signed a purchase agreement that allowed for up to {$7000.00} in closing costs. This purchase agreement also communicated that the property being transferred was under a HOA. 

On XXXX XXXX, the seller and buyer closed on the property. The seller paid {$6100.00} in closing costs. My neighbors said to expect a welcome letter from the HOA which would include instructions on how to pay HOA dues. 
After waiting over a week, I started looking for HOA contact information. I gained access to the HOA website on XXXX XXXX and called the HOA to inquire on the status of the monthly HOA payment. The HOA explained that they were not aware of the property transfer and would need to verify that I was an owner before providing any information. No effort had been made to convey the necessary documents. The HOA requested the necessary documents from Linear Title. The HOA then informed the buyer that there was {$750.00} in unpaid closing costs associated with the transaction. This left me responsible ( and delinquent ) for all these expenses. 

Also on XXXX XXXX, I contacted Linear Title and eventually reached XXXX XXXX XXXX in the " post-closing '' division. She stated that Linear Title was not aware that XXXX XXXX XXXX was under a HOA and the seller 's title company did not communicate there was a HOA. She contacted XXXX ( HOA ) and XXXX Title ( seller 's closing company ) directly. 
On XXXX XXXX, XXXX followed up to say the seller would pay for the {$310.00} disclosure packet ( " traditionally '' a seller expense ). 

On XXXX XXXX, I engaged my real estate agent to get in touch with the seller 's closing agency. 

On XXXX XXXX, the itemized invoice was received from the HOA. 

On XXXX XXXX, XXXX Title requested a copy of the buyer 's closing disclosure. I emailed a copy the next day. 

On XXXX XXXX, my real estate agent happened to see the seller 's closing agent ( with XXXX Title ) while conducting other business. The closing agent informed her that XXXX Title had no intention of paying the outstanding HOA dues that were associated with the closing and this decision was made last week. I was not aware of any attempt to inform me of these results. When I contacted Linear Title, they confirmed that the seller would only pay {$310.00} for the disclosure packet. 

On XXXX XXXX, I reviewed the documents with an attorney. We placed a call to Linear Title and eventually reached XXXX XXXX again. My attorney pointed out that Linear Title omitted HOA fees associated with the property transfer which they should have been aware of. XXXX XXXX apologized for the oversight but refused to take responsibility for the outstanding costs