Realtors Spring HOA on Buyers at Closing

I have heard from a number of homeowners in my community that their realtors denied there was an HOA or kept them in the dark until closing, when they were too invested to walk away.

Some of these pay dues but express resentment at having an HOA -- say they have too much invasive power, and would never have shopped the neighborhood if they had not been scammed. Others have not paid dues in years.

It's clear that their sleazy realtors are not our problem. We couldn't do anything about that, and they did sign up to join at closing with full knowledge at that time. But I'd like to find a way to smooth things out and help avoid this situation going forward.

Obviously, we can't intrude on people's personal realty transactions, and we have no authority to force specific behavior. (Or do we?)

I'm thinking about producing an "HOA Disclosure Statement" that there is an HOA, it's mandatory, URL of our web site (which state our dues and rules), etc. We could deliver this single page to homeowners with for-sale signs, along with a letter requesting they present this to serious buyers, before or upon receipt of offers or earnest money. We would have no way to monitor compliance, but it's a positive step.

Then we could go to anyone with this complaint, and say, "Look -- we had no knowledge of this problem before; but now that you've informed us, we are doing what we can. We don't have any obligation or authority in such matters, but we are working proactively to make our neighbors comfortable and avoid problems. Do you see anything else we can do?

"Now we'd like you to reciprocate. Please consider us your HOA -- not just a burden that has been forced upon you deceptively. Participate, if you please, and tell us what you think about our activities and our neighborhood. And pay your fair share, like all our other neighbors."

We are a Texas HOA of moderate to upscale single family homes, with a volunteer BoD and assets consisting of a few grassy common areas, so our dues are low triple digits annually.

Any comments are welcome. Good idea? Bad? Things we may have missed?

A number of years ago I was a Realtor in PA and we were required to give the buyer a copy of the CC&R’s at the signing of the Agreement of Sale and then, as Donna stated, the buyer had 48 hours to digest them and, if they saw something they did not like, to then rescind the AOS.

If the Realtor hid such information from the buyer, the buyer then has the legal route available to them.

When looking at homes previous to my purchase the MLS data sheet indicated there was and HOA controlling body (or similar) as mentioned earlier.

At closing it was also disclosed along with the current docs. and "rules".

I don't agree with the "springing it on them" or similar statement as that is when [at closing] it MUST be disclosed.

The OP has not stated what the depth of the buyers questions/discussions were prior to closing (nor I doubt she could) so I doubt anything "wrong" has occurred here.... unless the Realtor denied or otherwise decieved the buyers WHEN ASKED. That would then be grounds for a complaint.

Yea, I forgot... CAVEAT EMPTOR!

I understand Donna is interested in disclosure laws, but I still hope that someone will eventually respond to my actual post.

These homeowners said they knew about the HOA at closing, but had too much invested in the purchase at that point to bail out. That was years ago, so the details of the transaction and real estate laws of the period are immaterial at this point. That's how they feel, and that's how the next buyer might feel a few years later, so that's what I'd like to deal with.

The suggestion that they actually had discloser at closing (in contrast with their claim that they actually had disclosure at closing) is not so much irrational as beside the point. Same with the suggestion that they could have legally bailed or sued their realtor but chose instead to go through with the purchase (in contrast with their claim that they chose to go through with the purchase).

If your point is this is what I asked for, it really isn't. If your point is that it's what some of you wanted to talk about, I have no problem. Always happy to see any discussion. But I did hope for some response to my actual concerns.

My statements are second-hand; the statements of these few homeowners to me are first-hand; but I am concerned with their current perceptions and how those impact their attitudes to the HOA. The accuracy of their stories is not material to my concern. "Sleazy realtor" is an accurate reflection of their stories, not necessarily the actual behavior of various unknown realtors many years ago.

Nor does it matter to me whether HOA were as prevalent at that time (or known to be) or if these were realty virgins back then.

Where do you see risk in the specific involvement I proposed, please? That would interest me. Do you think it might have the desired affect of avoiding such perceptions in future, or being able to respond effectively to such future situations, or helping to change the attitudes of current homeowners? Do you see something else we could do?

Any comments are welcome. EXCEPT THE ONES THE POSTER DOESN'T LIKE.

There is a reason hearsay isn't allowed in a court; you don't know for a fact that the "sleazy realtor" didn't inform the people only that they said he did. It's easy to claim something that can't be proven. And while I'm not an attorney if someone changed the material facts of the contract, there is nothing to stop the person from not completing the deal.

If you want to prevent it from allegedly happening again post a sign at all of the entrances of your community: THIS IS A DEED RESTRICTED COMMUNITY WITH AN HOA.

Michael,

Having a couple of free minutes and I found what you need to know. IT IS TEXAS LAW DISCLOSURE FOR REAL ESTATE TRANSFERS

APPROVED BY THE TEXAS REAL ESTATE COMMISSION (TREC)
SELLER'S DISCLOSURE OF PROPERTY CONDITION

".Seller's Disclosure Notice Concerning the Property at Page 3
(Street Address and City)

Homeowners' Association or maintenance fees or assessments.
Any "common area" (facilities such as pools, tennis courts, walkways, or other areas) co-owned in
undivided interest with others.
Any notices of violations of deed restrictions or governmental ordinances affecting the condition or
use of the Property.
Any lawsuits

Please read my actual posts. You are complaining that I should have written what I actually wrote instead of what you somehow think I wrote.

You want me to see your point? OK, I should have written that people are welcome to discuss whatever they like, but I'd also enjoy a response to my actual post, instead of (you know) writing that people are welcome to discuss whatever they like, but I'd also enjoy a response to my actual post.

I should have written that I don't know or care what actually happened with the realtors many years ago, but just want to deal with how these people feel about the HOA and how new buyers are informed going forward, instead of writing ... well, we're belaboring this. Your other points (which are the same points the other contributors made) are also dealt with in both my original and second post.


That's way too intrusive on everyone for this limited purpose. If we give sellers a one-page handout, then we have an answer to anyone who later complains to us about problems with disclosure -- it's not our problem or our fault AND we did all that we could reasonably do to encourage disclosure.

Or were you just having fun with me?

Um, you're right. I miscounted hands.
What did I say about this in my original post? I agree it's not our problem, but my duty as a Director is to do what we can to serve the Association's interests, not avoid helping where we are not obligated. So, I ask if there is something we can do that may give us a substantial return for limited effort and risk.
Again, how? Since risk was suggested, we will consult an attorney, but it would be nice to have some idea to what risk we might be exposed. One purpose of the hand-out is to direct potential buyers to our web site.
If someone thinks we're invading their privacy by giving them a hand-out, I don't think that's something we should worry too much about. I'm sure many sellers let the realtors handle things and don't get personally involved, but sellers must know when earnest money is given and offers are made. I think if they give their realtor the hand-out, then they will be better insulated from disclosure problems, and the realtor will be motivated by greater liability.

We are not so large. Our homes number in the low triple digits, as do our annual assessments (dues). I would not like such a sign at the entrance to our community. The HOA is not that prominent in our lives. IMO, such a sign might make sense if it was necessary to constantly remind people to abide by the rules, but not just for the few home that go for sale each year.

"Playing with me" mostly referred to the pokes that I should have written what I actually did write. Lotsa laughs, people, but let's move forward, please.