Tag Archives: condo documents

Selling or Buying a Condo? Does the HOA have these disclosures ready for buyers?

California Civil Code Section 4525 requires specific important disclosures be provided to members upon request, to give to prospective buyers. Well-run HOAs should have these many disclosures readily available.

Here is a checklist for buyers, sellers, and managers:

Governing documents

CC&R’s, bylaws, rules/regulations, Articles of Incorporation (or statement of non-incorporation), and Condominium Plan or Subdivision Map (not mandatory).

Finances

Annual Budget Report (multiple items, see Civil Code 5300).

Annual Policy Statement (multiple items, see Civil Code 5310).

Assessments

Regular, special and any schedule future assessments.

Financial documents and information

The Annual Budget Report contains important information regarding the association’s finances.

For example, is the association following the recommendations of its reserve study preparer, or is there little money in the reserve fund account, exposing the HOA to future major borrowing and consequently exposing members to future major special assessments? The HOA is required to have a written plan to become more adequately funded, and that plan must be disclosed annually to members.

The Annual Budget Report also includes a summary of insurance. Does the HOA have dishonesty insurance or earthquake coverage?

read more at: https://www.sandiegouniontribune.com/business/story/2021-08-28/hoa-homefront-does-your-hoa-have-these-disclosures-ready-for-buyers