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

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

TonyN2 (Illinois)
Posts: 62
Posted:
My condo association made it the norm for the board to meet with the buyer - I am currently the chair and I'm looking to streamline things - keep good practices and simplify old practices.

This time is used to sign documents from consenting to our CC&Rs, identifying how many keys they should recieve in resale, and collecting data from buyer like their car license plates, drivers licenses, etc.
These board meetings are not open to owners or even considered to be executive meetings since no minutes are taken, but a quorom is present.

Is this normal? On which basis or statute is the board doing having these meetings? Can a board deny a buyer for any reason at all?
I totally understand walking the unit owner through basic things like mentioned above - but does the board have the right to request a drivers license from each person the owner would like to allow to use the building key?
How far can a board technically go to retrieve such information for such purposes?

LoriM15 (Florida)
Posts: 1,009
Posted:
Do you have a property management company? They PM usually does this work.

Do your bylaws require a board meeting be called for this? If not, it seems to me that you could designate a representative to do this to gather all the information. What if anything do your bylaws or covenants say about required information for buyers?
LoriM15 (Florida)
Posts: 1,009
Posted:
I forgot to add that in our state we are allowed to do background checks and credit checks on potential buyers. When we purchased a condo a few years ago, the documents were emailed to us and we had to acknowledge them. We had to pay for and do an online credit and background check where we were required to provide SS numbers and drivers license numbers. The board had to approve our application once the checks were done. Then we were required after closing to go and get RFID stickers for the gate and finger prints for the pool gate system.

I don't know what's allowed in your state.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Sounds like some nosy busy bodies decided they wanted to do this. It happens. I have better things to do than being involved in potential buyers. I do have the time for NEW members whom are actual owners ... Buyers are not members of the HOA. They could be. Wait to do a new member orientation till they are members.

Former HOA President
JohnC46 (South Carolina)
Posts: 14,265
Posted:
If I had a buyer that backed out based on something that was said, I would sue the BOD in NY minute.
TonyN2 (Illinois)
Posts: 62
Posted:
We do have a PM, but they haven't done all of this. It was the boards initiative to continue having an "interview".
It seems like some board members just like to say their piece and analyze the person. I know how that sounds. But, sometimes its a : "oh, and don't forget to change that toilet seal when you move in!" or "this building is non-smoking! remember!".

I kind of feel like this is what's going on and that's why I'd like to modify it if so.

I guess I could ask our lawyer to see what they would just recommend.
ElleN (Idaho)
Posts: 4,420
Posted:
Tony, yes talk to your attorney.

Certain (many? all?) New York City co-ops have a lot of leeway when it comes to rejecting applicants/buyers. But the legal structure of co-ops is quite different.

Is there anything at all in the bylaws or covenants about the board interviewing buyers? If not, then I would be quite concerned about what this board is doing.

It has been decades since I heard of a HOA or condo having the right to reject a buyer. I tend to think the board is taking a lot of risks with this interview and possibly some of the requirements.
KerryL1 (California)
Posts: 14,550
Posted:
Tony says "buyer," not prospective buyer. Yet, Tony writes can the board deny the buyer? Buyer means they've ALREADY made the purchase. So, Tony, please clarify.

Since the board is not making any decisions at the meeting with the new owner, I don't think the meetings are opposed to IL open meeting laws.

But they seem intrusive and unnecessary and makes the Board appear to be a bunch of pearl-clutching busy bodies. Ick. Why ISN'T the PM doing this "orientation," which is very common?

I cannot image that such an "orientation" is required in your governing documents or statute, but if so, please tell us which document and the exact wording.

You say, Tony that you're the "chair." chair of what? do you mean you're president of the board?

If you're talking about an actual buyer/new owner, an "orientation" with them would be very nice and surely can be conducted by one board member. The signature that they'll agree to the CC&Rs is probably OK, and the rest of the info is requested by condos in general especially assuming there's parking on the premises.

What size is your Board and your HOA? Anyhoo, I have never heard of such a thing (except) in FL over many years of visiting this site. It's a waste of the board's and feels unfriendly to your new owners. Wire an agenda item to laminate this practice and replace it with the PM doing this in their on-premises office (do they have one?), or assign it to one director who would like to "welcome" new owners.

SheliaH (Indiana)
Posts: 6,964
Posted:
Some of this sounds like overkill - the seller and buyer should discuss things like the number of keys (for the unit) and ideally, the buyer got a copy of the CCRs and Bylaws before the sale was finalized so he/she/they know what they're getting into. If they didn't, that's between the seller and the buyer, and the HOA should stay far, far away from that.

Did you ask your colleagues how long this has been going on and who/what started it? I can understand asking about the number and make/model of cars, in case you have disputes on illegal parking, but you don't need driver's license information. In fact, consider the questions being asked and what the answers have to do with the condo association. If you and your colleagues can't explain that in plain English, you're wasting everyone's time.

Give the new owners a welcome kit providing basic information on the association, like meeting dates, who's on the board, who's the property manager, how to get keys to the building, replacement costs, if any, etc. You could also designate a board member as a type of "buddy" to get them acclimated into the association. Personal stuff like SSNs, you don't need, so just stop it.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
TonyN2 (Illinois)
Posts: 62
Posted:
Board is 7 directors - I think we're on the same page.

Our declerations don't have any verbiage for these sorts of meetings.
Really trying to not do them if we don't need to, lol.
TonyN2 (Illinois)
Posts: 62
Posted:
Board is 7 directors - I think we're on the same page.

Our declerations don't have any verbiage for these sorts of meetings.
Really trying to not do them if we don't need to, lol.
TonyN2 (Illinois)
Posts: 62
Posted:
Have not asked yet. Waiting to learn more from others first because some of our directors are ESL and it is hard to really have these kinds of conversations in specefic.

We have a welcome kit we can most certainly funnel through our PM to add to whatever else they're doing.
JoeN6 (Virginia)
Posts: 94
Posted:
Our condos don’t have that , but it’s not a high rise with a lobby elevators and a swimming pool . It’s a garden style , you park , walk to your common stairwell and to your door . If you have a car to park on the property if you want your hang tag go register your car , I’ve never shown my DL .

As a potential purchaser , for any property that collect a fee be it HOA, or non hoa with a road maintenance grrement , do I want a meeting / phone call? Depends on what’s disclosed ie once I get the disclosure packet and look at it, I might have questions for the seller , . If I get no response I’ll cancel the offer . How motivated is the seller let them set up a meeting . I understand the HOA . Certainly they want to see a ratified contract before they waste their time . But I’m not showing them my drivers liscemse until I’m an owner
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I think a good Welcome Kit should be sufficient. No need for a personal meeting.
TimB4 (Tennessee)
Posts: 21,061
Posted:
Quote:
Posted By JohnC46 on 10/30/2023 12:29 PM
I think a good Welcome Kit should be sufficient. No need for a personal meeting.

Concur.
KerryL1 (California)
Posts: 14,550
Posted:
So, Tony, are we talking about someone who already has purchased a condo unit?

Agree about a good welcome kit probably being sufficient. Our condo high rise has some tricky thing to learn and so our buyers meet with the manager assistant for 15 or so minutes. the latter assigns them their fob, their front door openers, their key for certain other common areas and a. motorcycle parking space or bicycle parking space if requested. She also shows them on a building map where their P-1 level storage area and individual deeded appx 4x10x6' Locker in it is.

She also reminds them of a handful of important rules & how to prevent water damage. I served on the Board for 14 years & if our board had to interview every new resident (wouldn't we interview t renters too?25% of our residents), I would not have served. In our 200+ units, turnover is frequent.

Look, Tony, an HOA board's job is primarily to protect, maintain, & repair/replace common area components.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
It is not a good idea to sit down with POTENTIAL buyers. Example of what happened to use once. We had a member selling their home. The buyer called our accounting firm who intercepted calls/mail etc... for us. They wanted to know who owned the driveway. I explained how the HOA worked and that the driveway wasn't necessarily the homeowner's. It was considered "Common area". The buyer did not like the answer and the home sale fell through. This could been considered the HOA's fault in the eyes of the Seller/Buyer. That opened up for potential for a lawsuit for interrupting the sales transaction.

Another thing people don't often understand is that the HOA is NOT responsible for providing the Articles of Incorporation or the CC&R's. They are considered PUBLIC documents. Some states it is they SELLER to provide them. The By-laws (if exist) are the HOA's documents. It may be a nice "courtesy" to provide the documents upon request. Nothing wrong with that. However, it should be disclaimed the HOA is NOT responsible.

The HOA doesn't want to get tangled up with Rentals or sales of property transactions. They are a 3rd party.

Former HOA President
JoeN6 (Virginia)
Posts: 94
Posted:

Another thing people don't often understand is that the HOA is NOT responsible for providing the Articles of Incorporation or the CC&R's. They are considered PUBLIC documents. Some states it is they SELLER to provide them. The By-laws (if exist) are the HOA's documents. It may be a nice "courtesy" to provide the documents upon request. Nothing wrong with that. However, it should be disclaimed the HOA is NOT responsible.

In Virginia , yes , the seller provides the resale certificate ( which requires content including articles of inc. And association bylaws among other things),
The seller , requests from the Association, not the depository where Public documents are kept. The association may not deliver in the required timeframe , or furnish it incomplete , where the buyer now has either : go ahead and purchase , or cancel the purchase . The seller may really be
Motivated , the buyer may be very interested in the property but due to incomplete resale docs, he needs someone to fill in the blanks . Hoa president ?
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By JoeN6 on 10/30/2023 4:44 PM

Another thing people don't often understand is that the HOA is NOT responsible for providing the Articles of Incorporation or the CC&R's.
I would not say this. In California, for one, statutes require the HOA to provide these documents and more to (1) any owner who requests them; and (2) anyone the owner specifies (as in prospective buyer in particular). See https://www.davis-stirling.com/HOME/Statutes/Civil-Code-4530
KerryL1 (California)
Posts: 14,550
Posted:
The CA HOA must provide them to current owners, i.e., sellers. Then the sellers (owners) provide them to the prospective buyers, to title companies, to lenders if they want them, etc., or specify to the assoc. to whom to supply them to.

There is no requirement that the HOA provide these to, say, a realtor representing a prospective buyer. Our public website makes it easy for everyone including perspective buyers as our CC&Rs, Bylaws, Rules & Regs ("Community Handbook"), and Architectural Guidelines are all on it--at least the last time I looked.*

One reason we make them so handy is realtors often come from the "burbs with theirr customers and none are familiar with high rises, which can differ a lot form the prospects' current homes even if in an HOA. Prosects also can quickly read our rules to see if they can stomach them. Ditto our Arc Guidelines.

These are all of our governing documents except our Election Rules, much of which are handled in our Bylaws.

Our Articles of Incorporation are not on this website, but are very brief and would not deter a prospect.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By KerryL1 on 10/30/2023 7:23 PM

There is no requirement that the HOA provide these to, say, a realtor representing a prospective buyer.
No, this is not accurate. From Civil Code 4530:

Upon written request, the association shall, within 10 days of the mailing or delivery of the request, provide the owner of a separate interest, or any other recipient authorized by the owner, with a copy of all of the requested documents specified in Section 4525.
LetA (Nevada)
Posts: 2,679
Posted:
You're doing a second credit check on a buyer that is already pre-qualified by a lien holder, that could jam up the first and then potentially jam up a 3rd if
the buyer needs to buy furniture or appliances on time.

If a board wanted to do that, I would pass and buy another property.
JoeN6 (Virginia)
Posts: 94
Posted:
@ ElleN. I was quoting Mellisa p above . I havnt learned how to properly “ quote”
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Joe I stated the HOA does not give the potential buyer the documents. They may give a copy (with copy charges) to the Seller whom is still a member. Again people forget these documents are for HOA members. You are NOT a member until your an owner. Doing your research prior is looked upon as your right to be informed. It doesn't mean you are. Seen many posts of people whom want to sue someone over NOT getting the documents and don't feel they should follow them because of that. The law is not on their side unless it is with the seller requirement. Not the HOA, Realtor, Insurance, Lawyer, or mortgage company fault.

Former HOA President
TonyN2 (Illinois)
Posts: 62
Posted:
Melissa that is a great point.

Illinois condo law in 18.5 also says the owners should recieve the documents. The distinction is definitely important.

ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By TonyN2 on 10/31/2023 6:47 AM

Illinois condo law in 18.5 also says the owners should recieve the documents. The distinction is definitely important.
It is 765 ILCS 605/22 that requires a condo seller to provide the declaration and bylaws (and more) to a buyer.

JoeN6, surely you could have done something to indicate that you were quoting another person. My goodness. I am not going to sugarcoat this: Talk about confusing and awful communications. Or start a "test thread" and try some test posts where you try to quote another person's posts.

JoeN6, are you on a HOA board?
JoeN6 (Virginia)
Posts: 94
Posted:
Not a board member
KerryL1 (California)
Posts: 14,550
Posted:
I wrote: "The CA HOA must provide them to current owners, i.e., sellers. Then the sellers (owners) provide them to the prospective buyers, to title companies, to lenders if they want them, etc., or specify to the assoc. to whom to supply them...." I continued: "There is no requirement that the HOA provide these to, say, a realtor representing a prospective buyer."

Elles insists that my words are incorrect. She cites Civ. 4630: "Upon written request, the association shall, within 10 days of the mailing or delivery of the request, provide the owner of a separate interest, or any other recipient authorized by the owner, with a copy of all of the requested documents specified in Section 4525."

Since she keeps accusing me of poor reading comprehension skills, I guess she'll need to clarify for my flawed brain how her citation contradicts my above.

In my opinion: in CA, Owners must give permission to the Association to provide the governing docs to ANY non-owners.

🎯 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