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Started by CherylT • 18 replies • 1667 views

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CherylT (Arizona)
Posts: 11

Posted:

I am the President and Treasurer of a HOA in Az. Having duo positions, as the last
treasurer was fired because she did not carry out her duties to bill the homeowners
as their HOA dues were up for renewal, as this is a new home subdivision.
My question is, am I responsible to supply the C,C's and R's to new homeowner's
or is the seller responsible for this? I have read some info on condos stating
f there are 50 units or less, then the seller is responsible, but I haven't found
any articles for single family homes, our community has only 30 homes.
have a homeowner who has been living here for a whole year and hasn't paid dues
because the previous owner didn't let the title co. have my info. The title co.
sent the Escrow Check for the Whole year's dues back to the homeowner for her to
give to me, when she found my address, which she knew for quite some time, as I
also do live in the community. The title co. finally sent me the transfer fee,
but the homeowners still owes for the previous year. She said she will send to
me after I send her a detailed bill and the C, C's and R's. She has sent me some
rude letters and I can tell she doesn't know anything about how an HOA is run.
Pretty much, I think she spent the money and is stalling for time. Also, should
the Title Co. have closed on this property if she hadn't received the info on the
HOA in advance and signed the agreement on the HOA rules? Where do I go from here?
Just to add, the only way I found out a new homeowner moved in, is when the current
homeowner opened the seller's mail, as I was billing them for Dues, apparently
after they moved.

WilliamT (Arizona)
Posts: 489

Posted:

http://www.azleg.state.az.us/FormatDocument.asp?inDoc=/ars/33/01806.htm&Title=33&DocType=ARS

Here is the AZ law that describes the responsibilities.

BrianB (California)
Posts: 2,820

Posted:

In arizona, with 30 units, the HOA is not required to provide the rules, the title company/seller is responsible. Her beef is with the seller and title company.

CherylT (Arizona)
Posts: 11

Posted:

One other question, with her having the check for the HOA given back to
her from the title co.and in her possession since April 06' and she moved in
in Nov 05', and she knew where I lived and failed to bring or mail the
Escrow year in advance dues, is she still liable for the late charges until
she pays? She has sent me nasty letters, which I keep in her file, but still
no dues?

BrianB (California)
Posts: 2,820

Posted:

IMO, yes, she is still responsible to pay on time. the board could cut her some slack, but that's the board's decision, not the treasurer's.

She might have a suit against the title company for failure to pay, etc., but i suspect not. Once she got the check back, she could have at least asked her neighbor "Hey, where do you pay your association dues?".

CherylT (Arizona)
Posts: 11

Posted:

Thank you so much for the info!

The funny thing of the whole situation is that her neighbor is a relative
to her, I found out one day when I was at the mailbox talking to a homeowner
who waived me down to see how much they owed and said they lost their bill
(as if I carry the files around with me.) So that's why I was asking about
charging late fees, she knew where I was from day one. Thanks again.

HaroldS (Arizona)
Posts: 906

Posted:

Cheryl - is it a good idea as president to also be treasurer? Many organizations do not allow the president to assume the duties of other board positions - especially treasurer. In fact, our documents expressly forbids the president from holding more than one position on the board.
I'm also wondering how you "fired" the treasurer. I assume she was elected by the members, and usually it is the members only who can recall an elected board member. Harold

CherylT (Arizona)
Posts: 11

Posted:

Just for the record, our HOA does allow a director of the Board to assume
more than one position, and states that in writing. We were firing her, but
she put in a letter of resignation on the same day when we all met at the
bank. So everything is legal and on the up and up. Are you in Az.,Harold?
Also, in a small community, where there are no homeowners who want the
responsibility of any office on the Board, someone has to do it! And I do
add, I go above and beyond my duties. So yes, it is a good idea for me to
assume both board positions.

DJ1 (Ontario)
Posts: 798

Posted:

Just a thought but wouldn't it be better to be proactive than reactive on supplying the CCR's to new buyers. The costs of photocopying are probably much less than the aggravation of hearing "I wasn't given a copy of the CCR's, or I didn't know this or that'.

It may not be the HOA legal responsibility but for those who honestly would follow the rules it would be a better start. For those who wouldn't, giving a copy of the ccrs wouldn't matter.

Just trying to see how giving the ccr's to new owners would be a POSITIVE foot in the door as well as way to introduce you(hoa) to the owner and tell them if they have any questions to feel free to call.

BrianB (California)
Posts: 2,820

Posted:

DJ, another thread had a similar idea, and most of us agree it is a good one. The problems lie in the timing, information path, etc... Giving the buyer the rules after the sale is a less than perfect situation.. .they already signed on the dotted line, agreeing to everything. Sometimes, we in the HOA don't even know about a sale until long afterwards (ie, someone stops paying their dues, and we finally connect with them, to find out they sold six months ago).

However, as you (and others) point out, this gesture beats doing nothing, and may well be the best way to make lemonade out of a situation.

HaroldS (Arizona)
Posts: 906

Posted:

Cheryl - Lucky you she decided to resign, because if your board was going to fire her you would not have been "legal." Read Arizona Revised Statues 33-1813 which spells out the legal way to remove a board member.
http://www.azleg.state.az.us/FormatDocument.asp?inDoc=/ars/33/01813.htm&Title=33&DocType=ARS
Harold

CherylT (Arizona)
Posts: 11

Posted:

Thanks for your info Harold, but our HOA does know how to legally remove
a board member, we were all set to fire her, but she brought her resignation
to the table as to save face.

BrianB (California)
Posts: 2,820

Posted:

note that if a board member holds the position of treasurer, they can be removed from the position, and remain on the board... board membership and board positions are separate...

DavidJ2 (Arizona)
Posts: 13

Posted:

ARS 33-1806. Resales of units; information required; definition
A. Except for a sale in which a public report shall be issued pursuant to section 32-2183, for a sale which is exempt pursuant to section 32-2181.02 or for planned communities with fewer than fifty units, a member shall mail or deliver to a purchaser within ten days after receipt of a written notice of a pending sale of the unit, and for planned communities with fifty or more units, the association shall mail or deliver to a purchaser within ten days after receipt of a written notice of a pending sale that contains the name and address of the purchaser, all of the following:......

Title company should have sent you an HOA information form to complete regarding the dues status and fees and violations and such prior to close of escrow.

Dues: Have title company provide a copy of the dues check sent to that owner (which she cashed). Send that copy along with a bill for the outstanding dues owed and a date due deadline. Go ahead and include a copy of the CCR's as a courtesy.

Also send her a copy of the document acknowledging that she lives in an HOA, as required by state law. May want to send it certified mail.

In a future newsletter remind homeowners to notify you of any sale or tell them how the title company can get a hold of the HOA board. In addition, keep a close watch for for sale signs and when they go up send a reminder letter to the owner and the agent advising them of how the title company can contact the HOA.

RonaldW (South Carolina)
Posts: 901

Posted:

Posted By DJ1 on 11/23/2006 8:01 AM

Just a thought but wouldn't it be better to be proactive than reactive on supplying the CCR's to new buyers. The costs of photocopying are probably much less than the aggravation of hearing "I wasn't given a copy of the CCR's, or I didn't know this or that'.

It may not be the HOA legal responsibility but for those who honestly would follow the rules it would be a better start. For those who wouldn't, giving a copy of the ccrs wouldn't matter.

Just trying to see how giving the ccr's to new owners would be a POSITIVE foot in the door as well as way to introduce you(hoa) to the owner and tell them if they have any questions to feel free to call.

The HOA should provide a copy or at least a "short version" wirh the "rules". Many people will not read the CC&Rs, they are pretty busy moving.

We sent out our "short version" with the last newsletter just so everyone would have one. It's also on our website.

Ron
SC

BradP (Kansas)
Posts: 2,640

Posted:

Place your CC&R's on your website in a member's only area. Then they can have access to them whenever they want. Yes, from a customer service standpoint it would be nice to give to them.

However, the HOA should not have any responsibility to supply to new owners, they should have asked the questions before buying and should have insisted the Title Co. and Seller give them that info. What Title Co. gives a check back to the buyer and asks them to deliver, that is absolutely crazy.

To end this situation I would send her the covenants, request payment in full in 30 days without a penalty or after 30 days she will be assessed interest and penalties starting from the date of purchase.

RogerB (Colorado)
Posts: 5,067

Posted:

Brad, in Colorado it is required for a seller to a potential buyer numerous HOA documents. On a web site I prefer to have the Declaration, Articles of Incorporation, By-laws, and the Rules and Regulations available to potential buyers. I view an HOA web site as a very useful tool for a potential buyer as well as the current owners.

RonaldW (South Carolina)
Posts: 901

Posted:

Posted By RogerB on 12/13/2006 10:20 AM

........On a web site I prefer to have the Declaration, Articles of Incorporation, By-laws, and the Rules and Regulations available to potential buyers. I view an HOA web site as a very useful tool for a potential buyer as well as the current owners.

I agree. It allows a potential buyer to include these items in his/her buying decision and it removes any unpleasant "surprises" after the purchase.

Ron
SC

BradP (Kansas)
Posts: 2,640

Posted:

Roger:

I wish my state was as straightforward as Colorado, we are kind of primitive over here. I agree, an honest seller would disclose no problem.

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