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Condo Law Insurance

I own one unit –"A"- in a two unit association in Pembroke , Mass the building is a condex-two single family homes sharing a fire wall-no condo fees and insured as two single family homes. A unit 65% ----B unit 35%

The condo. association – – cond docs call for a master policy.

Three months ago I tried about a dozen banks to refi-in all cases the refi hits a brick wall due to lack of master policy.

Other unit owner will not go with master policy and if I get the policy on my own it would be a nightmare to collect premium from her.

Is there a better way to handle this master policy issue? Without a master policy I can not refii – If I can’t refi then a prospective buyer would not be able to get financing - thus I can not sell my unit.

If you have a solution I would like to meet with you.

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Unfortunately you have few options, and few good ones. Seemingly inconsequential matters take on a life of their own in condo disputes when there are only a few unit owners involved, as you are experiencing now.

My take is that you need to speak with an attorney to let her/him take a look at the condo docs to determine what amendment provisions might be employed to address this issue, while making certain that any amendments enacted won’t violate FNMA/FHMA standards to prevent future owners from obtaining mortgages - not an easy solution.

Does the other owner have a mortgage? Title search should reveal that quickly. Is that lender aware of non-compliance? A little pressure from the lender couldn’t hurt.

What do the condo docs say about placing liens on units? Not a better option, but acquiring a master policy yourself and then slapping a lien on the other unit is another thought - depending on the terms of the condo docs.

Might be worth picking the brains of your local agent for some other options as well, just so you have as much info as possible.

Good luck!

I agree: a sticky situation.  Federal home mortgage regulations actually require an arbitration clause in the condominium documents of condos with fewer than five units.  Check your documents.  This is an easy less costly way of resolving disputes with unreasonable unit owners in small condominium developments.  Even if your documents do not contain such a clause, you both can agree to submit to arbitration as a way of avoiding costly litigation.  You could also agree to hire an attorney to mediate the issues.  Also, even if the current owner does not have a mortgage, when he goes to sell the unit, this will become an issue for him, unless he can find a buyer who has a lot of cash.  So the owner also has an interest in resolving this issue, whether he knows it now or not.

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