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Buyer didn’t pass HOA application, NOW what?

I’m currently selling a house which has been under contract for 45 days. The closing is in 2 days.

I got a call today from my realtor saying the HOA board of directors, disapproved the buyer’s application on grounds of “criminal history”.

The buyer apparently had an ugly divorce a ten years ago, it was based around the kids. His X filed for a restraining order. We don’t know if there were ever any charges or arrests made, but he has since moved on, remarried, and started a new life.

To my knowledge there is nothing in the community’s covenants and bylaws that would disqualify a person for this and no amendment has ever been passed to change that. I also don’t think there are state or federal laws that disqualify a person, solely based on this.

It’s possible the board is discriminating without legal ground, but for the sake of keeping this short, I am out 7K for the time it was taken off the market.

The buyer put 10K initial deposit in escrow contingent upon him securing financing (which he already had). Before this gets out of control, should I lawyer up? Based on what my agent is saying, the buyer plans on hiring an attorney to challenge the HOA ruling, but if the decision stays final what are my options?

This is pretty fucking disappointing. I have a lot of questions; should I hire an attorney? What do I look for? should I extend the closing a week? Should I talk directly to all parties? Should we get the HOA’s attorney involved? Should I just look at recouping my losses now?

Thanks in advance for the help.

submitted by /u/FishTank-Frank1
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source https://www.reddit.com/r/RealEstate/comments/o9s325/buyer_didnt_pass_hoa_application_now_what/
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