Tracking Sales and Rentals

Started by ArthurR • 15 replies • 2166 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

ArthurR (Idaho)
Posts: 17

Posted:

The developer is getting ready to turn the HOA over to the residents. One question we have is how do you find sales and rentals within the HOA. If a person decides to convert from a homeowner to a landlord, how do you find that out? For sales, do you get some type of notification from the county?

Appreciate any information.

HaroldS (Arizona)
Posts: 906

Posted:

Does your documents give you control over rentals? If so, it should give the specifics of what information the owner needs to provide to you. In any event, your contract is still with the owner. The owner is still responsible for any violations, etc by the tenant. I'm not sure the owner is required to notify you of a property becoming a rental unless your documents requires him to do so.
As far as notifying you of pending sales: Again, your documents might address this, and you should also check your state laws. For instance Arizona has very specific notice requirements for transferring ownership of an HOA home. So even if your documents don't address this subject, and state law does, state law will need to be followed. Harold

ArthurR (Idaho)
Posts: 17

Posted:

Harold,

Thanks for the reply. Our CCRs are mute on both rentals and sales. We need to investigate Idaho laws and check with title companies to see if they have a flag on the Deed. Somehow they must know because they charge a HOA setup fee at closing.

Thanks again

ArthurR (Idaho)
Posts: 17

Posted:

RogerB (Colorado)
Posts: 5,067

Posted:

Arthur, if your association has manditory assessments then the title company probably will contact the association's Agent to get a "status letter" (or similar form). We provide a Certificate of Status of Assessment on every sale to the title company involved. We request a copy of the deed upon closing and also get the name of the buyer on the request form which is faxed to us.

The Board can establish a Rule to require all owners who rent to provide the name of the renter. The association can also consider other restrictions on renters.

ArthurR (Idaho)
Posts: 17

Posted:

I contacted a title company today and they said that the preliminary title search usually turns up the HOA. They also said it is sometimes indicated on the contract. They also keep internal records on HOA that they update on a regular basis.

Thanks for the replies.

SidneyP (Florida)
Posts: 302

Posted:

Roger, I have never seen or heard of a title company here in Fl of contacting the BOD's/MC to request this information. Not saying it didn't happen but there is nothing like this in our files. We have more then 50% rentals and we do not know who even one by name. Nor do we know who the new owner is and won't until it is made public record, which takes forever. Would it be possible for you to share a sample of the Certificate of Status and the form you send to the closing agent to be returned to you with all this vital information. Since the title company does not contact us can we contact them and ask for this information and are they obligated to give it to us?....The rule to require owners to identify their renters would be a great addition. Would this only need the vote of the BOD's?....You don't know how much I love this site, I have learned so much and add to my knowledge daily...Thanks you

RogerB (Colorado)
Posts: 5,067

Posted:

Posted By SidneyP on 11/27/2006 5:28 PM
............ Would it be possible for you to share a sample of the Certificate of Status and the form you send to the closing agent to be returned to you with all this vital information. ..........Thanks you

Attached is a sample

📎 Attachments (1):

⏸ Downloads temporarily unavailable

📝11127245934371.doc(24 KB)

SidneyP (Florida)
Posts: 302

Posted:

Roger...1st let me thank you...but I have to tell you I am not to computer savy. In other words I am dumb, I can't open it.

HaroldS (Arizona)
Posts: 906

Posted:

Sidney - A title company's function is to ensure a clear title. If your HOA has a valid recorded lien on a property, the title company will collect it and forward the proceeds. But unless your state allows it, they are not a collection agency for unpaid fines, interest, attorney fees and transfer fees (unless covered by a judicial lien.) They might try to collect those items as a courtesy, but a seller can question and refuse to pay those other non-lien charges sent by the HOA. Know what your state allows you to do. Harold

GlenL (Ohio)
Posts: 5,491

Posted:

Arthur, since you're transitioning you might want to check out http://www.communityassociations.net/ and click on developer/transition in the red box. They have some good articles on what to look out for during transitions.

Studies show that 5 out of 4 people have problems with fractions

hoatalk (California)
Posts: 603

Posted:

Sidney, Roger's attachment was an MS Word document. Maybe you just don't have the MS Word software?

I am attaching the same document to this message in PDF format. I'll bet you can open this version. The attachment is not emailed so click through to the website and open it there.

HOATalk

📎 Attachments (1):

⏸ Downloads temporarily unavailable

📄11128214770371.pdf(16 KB)

HOATalk.com, A free service of Community123.com
Provider of Upscale Community Websites
CLICK HERE to get a FREE trial community website
*See legal notice below (end of page)

DaniellaW (California)
Posts: 2

Posted:

Roger, all you have to do is get back on this message page and click on Roger's underlined section (the attachment) I am a compuklutz too and it came right up for me. Good Luck, Daniella

SidneyP (Florida)
Posts: 302

Posted:

Thank you so much, it worked this time...guess I didn't have the other. I have printed it off. What I'd like to know if the reale estate or title company doesn't contact the HOA can we contact them when their "For Sale" sign goes up. Especially for the HO's that owe us assessment dues.

RogerB (Colorado)
Posts: 5,067

Posted:

Sidney, how do you know which title company will be used? We deal with 10's of companies. The title transfer does not remove a debt against the property. But during a sale or refinancing it is an excellent time to collect the delinquent account.

BrianB (California)
Posts: 2,820

Posted:

Sydney, i have in the past contacted real estate agents when their signs went up on the property. I did NOT directly say things like "You know, they owe dues and fines"... instead, i simply introduced myself to the realtor, let them know I was available to answer questions about the association, dues, fees, etc. for their potential clients.

It never fails, they ALWAYS asked me if the current owners owed money... and since I was being asked by someone who has a legal obligation to know (wonderful laws, those requiring realtors to also practice full disclosure), I could tell them what the new owners would be liable for upon closing...

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here