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When reviewing HOA (Homeowners Association) disclosures while preparing to sell or buy a unit, you can expect several documents that provide crucial information about the property and the association. These typically include:
1. CC&Rs (Covenants, Conditions, and Restrictions):
– These are the rules and regulations that govern the community. They outline what residents can and cannot do regarding property use, alterations, maintenance, etc. The CC&Rs cover various aspects of property use, including rules about architectural modifications, landscaping, noise restrictions, pet policies, parking regulations, and more. They detail what homeowners can and cannot do within the community and are legally binding for all residents.
2. Bylaws:
– These detail how the HOA operates, including board member elections, meetings, voting procedures, and other governance-related matters.
3. Financial Documents:
– This includes the HOA’s budget, financial statements, reserve fund status, and any pending or ongoing special assessments. It’s crucial to assess the financial health of the HOA to ensure it can meet its obligations without imposing unexpected costs on the seller or buyer.
4. Meeting Minutes:
– These provide insights into recent decisions, discussions, and actions taken by the HOA board. They might highlight ongoing issues or plans that could affect the property.
5. Insurance Information:
– Details about the HOA’s insurance coverage, including what’s covered by the master policy and what individual owners are responsible for insuring.
6. HOA Disclosures and Notices:
– These may include any ongoing or past legal disputes, violations, or pending litigation involving the association or the property.
7. Resale Package or Disclosure Documents: –
– Some states require specific documents to be provided to the buyer, often referred to as a resale package. This package includes essential information about the property and the HOA.
Reviewing these documents is crucial for both sellers and buyers. Sellers need to ensure they disclose all relevant information about the property accurately. Buyers should carefully examine these documents to understand the rules, regulations, financial health, and any potential issues within the community before making a purchase decision.
