Tag Archives: hoa documents

Buying in HOA? Review These Disclosures Before you Buy.

Before buying an HOA you review documents/disclosures so you can make an informed decision.

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.

Unresolved Problems:

Delinquent assessments, unpaid fines, and unresolved violations.

Unique Issues

Disclosure if age-restricted community.

Construction defect lawsuit information regarding defects disclosed to builder and (if settled) plans to repair them.

Read more at: https://www.roattorneys.com/blog/does-your-hoa-have-these-disclosures-ready-for-buyers

HOA Governing documents – Learn it, know it, live it

CC&Rs — The CC&Rs document is recorded (amendments also must be recorded), and therefore is also a public document. Associations often use unrecorded, unofficial copies, but official copies can be retrieved from the County Recorder.

CC&Rs (Covenants, Conditions and Restrictions) are a long contract automatically binding all owners, and the law holds each to have read, understood, and agreed to its contents… regardless of whether the owner actually did so.

CC&Rs cover how the property is used, maintained and repaired, and very much affects living in that association. There usually will be a section called “Use Restrictions,” listing a number of prohibited activities, although restrictions can also be located elsewhere in the document. Restrictions can range from pet limits to parking to rental restrictions. In multi-story condominium buildings, they may (and hopefully do) prohibit certain flooring surfaces. CC&Rs will also usually address what the HOA maintains and repairs and what is homeowner responsibility.

CC&Rs are amendable through a vote of the membership. However, the stated percentage of votes required for amendments is usually high, making amendment more difficult.

FYI: thinking of buying a condo with a VA loan?  The complex must be VA approved.

read more at: https://www.sandiegouniontribune.com/business/economy/sd-fi-hoa-0309-story.html

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