During closing, a seller usually turns over HOA-related documents to the new owner, also known as an HOA disclosure. This step is vital to starting a good relationship between the owner and the HOA. Typically, a disclosure involves various paperwork, including bylaws, rules, amendments, financials and other questions often asked by new property owners.
HOA disclosures help inform homeowners about what regulations exist within the community and the penalties they may face for noncompliance. Aside from turning over documents, this disclosure can allow new owners to request clarifications about their obligations, including their monthly HOA fees and applicable rules for overdue payments.
These disclosures may also come with a fee, considering how much it would cost to prepare the documents. Depending on the situation, the paperwork could include up to 300 pages. The person responsible for this expense can vary. Sometimes, the seller or agent can prepare it based on the circumstances.
If there are issues during closing involving the disclosure, each homeowner association could have diverse ways to resolve them. Sometimes, the seller might print outdated documents or share inaccurate information, requiring clarification from the HOA. It is best to communicate proactively in these scenarios to prevent further confusion.
Answering questions about disclosure issues
Ideally, a property’s new owner can learn all the essential details from the seller or agent. If not, they can reach out to the HOA for guidance. Additionally, there is often a closing attorney who helps with the process. They oversee procedures involving letters and statements needed for closing the sale.
Several parties can also provide direction, but some situations could require legal counsel. Doing so can help determine if there are issues or inconsistencies in the disclosure requirements warranting the HOA’s attention.