cpvg3 (Virginia)
Posts: 5
Posts: 5
Posted:
When a home is being sold, who is responsible for notifying the new homeowner that there is a Homeowner's Association and annual dues? If state matters, in VA??
A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
new home purchases w/i the subdivision...
Started by cpvg3 • 8 replies • 1676 views
💬 Join us to post & get advice from 50,000 HOA & Condo leaders.
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in
hoatalk (California)
Posts: 603
Posts: 603
Posted:
"When a home is being sold, who is responsible for notifying the new homeowner that there is a Homeowner's Association and annual dues? If state matters, in VA??"
ANSWER:
I'm glad you mentioned the state, since this varies by state. In VA, the seller must give a disclosure packet to the buyer. The seller asks the HOA for the packet and the HOA must provide it, per the statute, then the seller gives it to the buyer. There is a very specific list of items that must be in the packet, which you can see in the statute here:
http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+55-512
ANSWER:
I'm glad you mentioned the state, since this varies by state. In VA, the seller must give a disclosure packet to the buyer. The seller asks the HOA for the packet and the HOA must provide it, per the statute, then the seller gives it to the buyer. There is a very specific list of items that must be in the packet, which you can see in the statute here:
http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+55-512
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)
Provider of Upscale Community Websites
CLICK HERE to get a FREE trial community website
*See legal notice below (end of page)
cpvg3 (Virginia)
Posts: 5
Posts: 5
Posted:
Thanks for the info and so quickly! I'm glad that this resource is out here.
TomK2 (Ohio)
Posts: 39
Posts: 39
Posted:
You can solve a lot of problems by sending a letter to the new owner. We pick up the name from the escrow company and the deed transfer from the county recorder's web site. we send a welcome letter to the new owner,a map of the complex, general info, garbage pickup etc.,a maintenance fee coupon booklet that tells them how and when to pay the fees, a list of Board members with phone numbers and remind them this is a HOA and we have bylaws that must be followed and if they have any questions call one of the Board members. Don't bet on the seller to do the work for you. Do it yourself. It works very well for us.
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
It is considered the Buyer's responsibility to be informed in my state of Alabama and many other states. That's because the CC&R's are PUBLIC documents available for review at the Records department at the COUNTY courthouse.
Now, that doesn't mean that the seller won't turn over the documents but that is usually at closing. No time to read them there. The mortgage company may need to know or does know the property is in a HOA. They have to figure the assessments/dues as one of your expenses like a loan/credit card payment. They aren't figured in the loan just a factor of if you can afford it. The real estate agent may tell you of the HOA but NOT of the rules. They may tell you the dues rate and one exists. Your responsible for knowing and agreeing to the rules. The lawyer doesn't really care if there is a HOA or not. They just make sure the paperwork is signed.
I always say it is good for a fellow member or an active board member to try to keep up with the selling transactions so they can contact the new buyer. I've had many new owner's think that the dues is part of their escrow payments. It's NOT. They usually get a little upset when they get a bill 6 months later threatening lien.
Another helpful suggestion: Make a brochure. I made a brochure that covered the "basics" of the HOA. Things like garbage, amenities, dues/assessment rates, and other contact numbers. It's a good sales tool and refresher for the members.
Now, that doesn't mean that the seller won't turn over the documents but that is usually at closing. No time to read them there. The mortgage company may need to know or does know the property is in a HOA. They have to figure the assessments/dues as one of your expenses like a loan/credit card payment. They aren't figured in the loan just a factor of if you can afford it. The real estate agent may tell you of the HOA but NOT of the rules. They may tell you the dues rate and one exists. Your responsible for knowing and agreeing to the rules. The lawyer doesn't really care if there is a HOA or not. They just make sure the paperwork is signed.
I always say it is good for a fellow member or an active board member to try to keep up with the selling transactions so they can contact the new buyer. I've had many new owner's think that the dues is part of their escrow payments. It's NOT. They usually get a little upset when they get a bill 6 months later threatening lien.
Another helpful suggestion: Make a brochure. I made a brochure that covered the "basics" of the HOA. Things like garbage, amenities, dues/assessment rates, and other contact numbers. It's a good sales tool and refresher for the members.
Former HOA President
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
In Colorado, certain HOA documents must be provided to a potential buyer long before closing. I think this should become a law in every state.
Why?
Because there isn't time to study these documents during a closing; and only knowledgeable buyers request them prior to signing a contract.
Here is how we do it:
Aa potential buyer can go to the public pages of www.CypressGreensHOA.com and view these documents, except for the financials and minutes which are on the members section. Thus an interested party can view the controlling documents prior to making an offer. All of the required documents are provided to the seller (usually by emailing - PDF) and they in turn provide them to the buyer through the real estate agents involved. If anything is not satisfactory to the buyer this is a valid basis by which they can terminate the real estate contract.
Why?
Because there isn't time to study these documents during a closing; and only knowledgeable buyers request them prior to signing a contract.
Here is how we do it:
Aa potential buyer can go to the public pages of www.CypressGreensHOA.com and view these documents, except for the financials and minutes which are on the members section. Thus an interested party can view the controlling documents prior to making an offer. All of the required documents are provided to the seller (usually by emailing - PDF) and they in turn provide them to the buyer through the real estate agents involved. If anything is not satisfactory to the buyer this is a valid basis by which they can terminate the real estate contract.
MicheleD (Kentucky)
Posts: 4,491
Posts: 4,491
Posted:
I'm not aware who's responsibility it is in Kentucky, but I DO know that one of the documents a homeowner signs at closing is one that provides a WAIVER to the Title Search Attorney for NOT disclosing whether or not Deed Restrictions run with the property. I only found this out accidentally. I have lived in my deed restricted community for about 10 years now and have known from the beginning. It's why I moved here.
But my husband and I were purchasing a home in another zip code here that is in a much older subdivision. Probably built in the late '60s I would imagine. I was buying it for my dad so that he could move close by (he had been living in Colorado).
During the closing, we were signing all the boat load of documents the closing attorney was shoving in front of us. One of them was this Waiver. I said, "ho-ho-ho. Hold on a minute. What is this title waiver for?" He replied that IN CASE there were CC&Rs attached to the property, we would hold him harmless from providing that information to us ahead of time.
I asked him if there were any? CC&Rs? and he just shrugged, "I have no idea."
Some closing attorney! But he did say that was a standard document in almost all closing packets. Nice little get out of jail free card -- in advance!!
But my husband and I were purchasing a home in another zip code here that is in a much older subdivision. Probably built in the late '60s I would imagine. I was buying it for my dad so that he could move close by (he had been living in Colorado).
During the closing, we were signing all the boat load of documents the closing attorney was shoving in front of us. One of them was this Waiver. I said, "ho-ho-ho. Hold on a minute. What is this title waiver for?" He replied that IN CASE there were CC&Rs attached to the property, we would hold him harmless from providing that information to us ahead of time.
I asked him if there were any? CC&Rs? and he just shrugged, "I have no idea."
Some closing attorney! But he did say that was a standard document in almost all closing packets. Nice little get out of jail free card -- in advance!!
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
It is viewed as the buyer's responsibility to be informed of the CC&R's. That's because they are PUBLIC documents located at the Records office of the County courthouse. The lawyer was correct in saying this form was "standard". It's NOT his responisibility to inform you of a possible HOA nor is it the Real Estate agents, seller, or lender. They can tell you one exists and what the dues are. They are NOT responsible for you knowing the rules and you agreeing to them.
I will say some states do have laws that do make it a requirement of one of parties to make sure the buyer has the documents by closing but the laws in many states are still lacking. It can only be a law if it is created. Most states HOA's are not the norm and thus don't have any strong laws concerning them.
I will say some states do have laws that do make it a requirement of one of parties to make sure the buyer has the documents by closing but the laws in many states are still lacking. It can only be a law if it is created. Most states HOA's are not the norm and thus don't have any strong laws concerning them.
Former HOA President
JM2 (Oregon)
Posts: 439
Posts: 439
Posted:
Hi all:
In Oregon, it's part of the disclosure in the title process, usually the title company gives a copy to the buyer.
I wonder if buying a home is like being the colonel on M*A*S*H and the title officer is like Radar O'Reilly? Just keep signing where you are told...never knowing what you sign?
JPM
In Oregon, it's part of the disclosure in the title process, usually the title company gives a copy to the buyer.
I wonder if buying a home is like being the colonel on M*A*S*H and the title officer is like Radar O'Reilly? Just keep signing where you are told...never knowing what you sign?
JPM
🎯 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