If you own a home in Southern California and there is a Homeowners Association (HOA) you are required to disclose all of the HOA documents to the individual who is purchasing your home.
How Much Do HOA Documents Cost?
Within the last 12 months regulations have changed and nine times out of 10 the seller has to pay for the HOA documents in escrow and give a copy of these documents to the buyer.
Depending on the home, these documents can cost anywhere from $300 to $1000 but the good news is that should the buyer back out of purchasing the home at the last minute the documents can be given to the next buyer as long as this occurs within a short period of time.
Can the Cost of HOA Documents Be Negotiated?
Although the actual cost of Homeowners Association documents can’t be negotiated since they are set by the HOA, the reality is that in a competitive Real Estate market like Orange County a home buyer may want to offer to pay for the HOA documents especially if that buyer wants to make their offer stand out from other offers.
Let’s say that the HOA documents are provided when the property is first listed for sale, in this case, the buyer could still make their offer stand out by offering to reimburse the seller for the HOA documents.
Getting to Know the Home Owners Association
Since proper analysis of an HOA can take time, especially when it comes to reviewing financial or operational issues, buyers should also request copies of the demand statement, HOA bylaws, board meeting minutes notes, and past newsletters, to get a good understanding of what’s really happening with the HOA.
To dig deeper into the HOA, some buyers may want to request copies of the HOA’s budget or financial statements and research the community online to see if there are other issues being reported about the HOA online that they may not have known about.