Home Buying in Atlanta>Question Details

Arkla, Home Buyer in Atlanta, GA

what are the state laws for HOA?

Asked by Arkla, Atlanta, GA Fri Dec 27, 2013

Is buyer obligated to pay initiation fee, if no documentation is provided. (bylaws, board of directors, handbook, etc.) ? Can buyer withhold folds at closing table of fees, if this is the case? what recourse can be taken?

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Initiation fee is paid by the buyer or seller. The Association disclosure lists who will pay it. If it was not provided in the offer, the agent should have included it. Documentation is usually found online once you contact the HOA. The fee usually covers new pool access keys, a copy of the covenants and preparing the closing statement. There are ways around having it paid at closing, the closing attorney can provide you options BUT the HOA will get it from you if the seller doesn't pay it. These are questions that usually are best asked when negotiating an offer, not after it has been accepted.
0 votes Thank Flag Link Fri Dec 27, 2013
Arkla,

If there is a Community Association Disclosure Exhibit included in your Contract on this property, it clearly denotes who is responsible to pay the Initiation Fee... and it is usually the Buyer. Most HOAs or Condo Associations will provide the documents to you. If the HOA of Condo Association is professionally managed, they typically will charge you a nominal fee to obtain these; however, most HOAs provide them for free. You could also try and obtain them from the Seller of the Property.

Cheers,
Stacey
0 votes Thank Flag Link Fri Dec 27, 2013
Any legal questions would need to be directed to an attorney. I don't recall ever seeing an HOA that did not charge some type of Iniation Fee or Closing Letter Fee. A Real Estate Attorney cannot close a real estate transaction without a Closing Letter from the HOA.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Fri Dec 27, 2013
Arkla,

These are questions best answered by a Real Estate Attorney.

The State of Georgia is an Attorney State, and I suggest you reach out to an attorney for any legal advice.

It sounds to me like you may have already experienced, or anticipate experiencing issues with a Homeowners Association.

Having an attorney should help you navigate potential challenges.

Good luck!

Jonathan Cundiff
Mortgage Consultant
NMLSR ID 448285
Wells Fargo Home Mortgage
464 Cherokee Ave Se
Atlanta, GA 30312
Tel (404) 610-1011
Fax (877) 302-9968
Jonathan.R.Cundiff@wellsfargo.com
http://www.wfhm.com/jonathan-cundiff
0 votes Thank Flag Link Fri Dec 27, 2013
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