Why it’s critical to obtain HOA documents in a timely manner

[ 0 ] June 16, 2016 |

To the greatest extent possible, we at Navigate Residential work to get in front of any potential issues that might hinder the success of a sale. And, while every real estate transaction is different, one area that can sometimes draws objections from Buyers, and can therefore slow or even terminate a closing, is issues with homeowners associations (HOAs). Generally speaking, once a home goes under contract, the seller has about a week or so to get HOA documents to the buyer. These documents include, but are not limited to, bylaws, financials/budget, operating agreements, rules and regulations, minutes from the most recent annual owners’ meeting, etc. These documents are many and varied, and they provide numerous opportunities for Buyers to object. And, as long as Buyers raise their objections before the Association Documents Objection Deadline, they can withdraw their offer and likely be refunded their earnest money.

In order to deal with any potential objections as efficiently as possible, with few exceptions, we have made it part of our process to obtain these documents in advance of listing the home. Whether it is the homeowner obtaining these documents or us obtaining these documents on the homeowner’s behalf, we do the best we can to get them as soon as possible. Delays in gathering HOA documents can create unnecessary problems. Simply put: time is of the essence! The sooner the potential buyer has all necessary and required information, the sooner we can address any issues or concerns.

One of our stated goals is to anticipate and deal with potential issues before they happen, rather than be forced to react to problems down the line. Not every issue can be predicted, but as much as is possible, this is our goal. As such, working with us obtain HOA documents immediately, instead of waiting until the property is under contract, is one simple but significant move toward preventing potentially costly surprises.

 

Category: For Buyers, For Sellers

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