Dosug, Home Buyer in New York

Can an HOA refuse to approve a sale based on info they try to collect from the buyer?

Asked by Dosug, New York Fri Jun 15, 2012

Is this Florida HOA violating any laws with their application / approval process for a new home BUYER?

We are in the process of purchasing a unit/Condo within an HOA in Florida..

The HOA needs to provide a certificate of approval for the sale to close.. the seller already accepted our offer and we are just waiting for the close date and the certificate...

On their application they are asking us a lot of private personal information such as yearly earning amount, where we work, SS#'s, a copy of our sales agreement, they also want to do a credit check and background check on us even though we are not renters.

And the agreement says they are capable of disapproving the sale.

We sent in the application with everything they requested except we are not allowing them to know our earnings or do any type of credit checks.

Do they actually have a legal right stop a sale ?

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Answers

13
Yes, Some condo associations actually have the power to choose who can and cannot buy into the community. You should have received a document "Condominium Association Disclosure", which states whether the Condo association approval is or is not required before you are allowed to purchase a unit.

I am including a link found on the internet, this is the old generic form that we used to use for Florida contract. > http://www.17threalty.com/agents-forms/Condominium%20Associa…

You should have been provided the newest version with your offer documents. Was this answer helpful? If so please click on the "green thumbs up" or the "best answer".

Tony Vega
Charles Rutenberg Realty
2 votes Thank Flag Link Fri Jun 15, 2012
This is crazy and discriminate against legal immigrants recently moved in to the country.
A new immigrant does not have credit history in USA. and they have new SSN. So, there is not credit information in the USA based credit bureaus.
Flag Sun Oct 18, 2015
I'm try to buy a home the H.O.A deny me based on my credit score.
1 vote Thank Flag Link Thu Jan 23, 2014
They check your credit because if you are a late payer/no payer they have a right to know that. You will have to pay a monthly or quarterly HOA fee. They have a right to know if you are able to pay and if you pay on time. I cannot imagine why you would think this is not their business!
1 vote Thank Flag Link Wed Feb 27, 2013
The bank is a private entity, who has made their decision based on their company's criteria. Certainly they have probably been diligent in their assessment of the buyer's ability to pay back their loan, but that doesn't forfeit the condo association's right to make their own, independent determination of the credit worthiness of the applicant. The sale could also be a cash sale or could be funded with a private loan.
Flag Mon Mar 9, 2015
Ability to pay has already been determined by the bank when the person applies for a loan. The bank will consider all payments that the client has to pay when they decide to give a loan or not. The bank isn't going to loan $350K to someone that isn't going to pay a measly $300 HOA, when the house payment is $1700 monthly.
Besides, who would pay a 20% down ($70,000) and then not pay the HOA and risk a lien or foreclosure procedures from the HOA due to failure to pay.

They ask on my form 'why are you moving'. As if that has anything to do with paying HOA.
Flag Sun Feb 1, 2015
That's the idea......many would agree that HOA's need to review their questionaires, updating them and making them current with today's regulations. Some are very passe......

I for one would agree that many HOA's have gone overboard with their self created power without carefully considering individuals personal rights. Their, "it's my way or the highway" approach should be revisited.

Consider having your attorney draft a letter on your behalf explaining why you have elected to modify your information request.

You're not alone in this.....

Bill
1 vote Thank Flag Link Thu Aug 16, 2012
The seller should be aware of the conditions before they purchased. You are aware of the conditions before the purchase. The HOA is checking on you to make sure you will pay your bills. Starting with the HOA fee. If you won't allow them to view your credit rating, the message has been sent. People with good to excellent credit ratings do not usually try and hide them.
0 votes Thank Flag Link Sat Nov 14, 2015
This is crazy and discriminate against legal immigrants recently moved in to the country.
A new immigrant does not have credit history in USA. So, it will hard to find any credit information in the USA based credit bureaus.

I have some friends looking to buy cash, they recently moved to USA and they just got their Social security number a wee ago. How they can have a high credit score?

How about foreigner people with no SSN looking to buy cash a second home ?
0 votes Thank Flag Link Sun Oct 18, 2015
Having a resource to help with HOA information and documents makes life easier for real estate agents. Recently, when selling a home in Ohio, Association Online provided me with all the HOA details for the listing, and then provided all the documents - by-laws, financial statements, covenants, etc. They made sure the package was complete, making my work easier. Their web site is well organized and very easy to use - http://www.associationonline.com . Call their team of experts – they are great to work with (970-226-1324).
0 votes Thank Flag Link Tue Feb 4, 2014
In Florida a Condo Association (not HOA) has the right to review all of those documents to be sure that the buyer is able to pay the assessments of the Association. However, they will seldom deny a qualified buyer unless they have a criminal background as it relates to the safety of the community. I hope your sale went through. Thanks, Lyn Marino 772-215-0089 LCAM, Broker Associate
0 votes Thank Flag Link Thu Aug 16, 2012
This is crazy and discriminate against legal immigrants recently moved in to the country.
A new immigrant does not have credit history in USA. So, it will hard to find any credit information in the USA based credit bureaus.

I have some friends looking to buy cash, they recently moved to USA and they just got their Social security number a wee ago. How they can have a high credit score?

How about foreigner people with no SSN looking to buy cash a second home ?
Flag Sun Oct 18, 2015
what if my buyer does not have a SS#
Flag Fri Nov 15, 2013
I am in the process of buying a home cash and have produced all the above documents and the hoa is putting all kinda of obstacles in our way.....
Flag Fri May 10, 2013
Absolutely. You can be denied if they find somehting in your background check that goes against their standards, a poor credit report. etc. Remember, even if you are paying cash, they can reject your application for approval.
0 votes Thank Flag Link Sun Jun 17, 2012
I'm in the process of purchasing a home in Port St. Lucie and the association is requiring us to pay around $600 ($450 contribution + application fee and background fee). Is that legal?
Flag Tue Apr 14, 2015
Good Day,

Yes, most HOA have in their documents first right of refusal with a time period.

Hope it works out for you.

Best Regards,
Constance Crawford, P. A.
Florida Realtor®
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0 votes Thank Flag Link Sat Jun 16, 2012
If the governing documents provide for such, the HOA is within their legal right to request the information and not approive the sale. Those provisions should be stated clearly in the governing documents that should have been provided to you by the current home owner.
0 votes Thank Flag Link Fri Jun 15, 2012
I'm not sure what is legal in this situation. I would recommend that you contact a real estate attorney for further guidance.
0 votes Thank Flag Link Fri Jun 15, 2012
Some associations in Florida are set up with the right to reject a buyer. You need to carefully review the association documents that should have been provided to you.
0 votes Thank Flag Link Fri Jun 15, 2012
This is crazy and discriminate against legal immigrants recently moved in to the country.
A new immigrant does not have credit history in USA. So, it will hard to find any credit information in the USA based credit bureaus.
I have some friends looking to buy cash, they recently moved to USA and they just got their Social security number a wee ago. How they can have a high credit score?
Flag Sun Oct 18, 2015
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