Dssf_trulia, Home Seller in San Francisco, CA

Condo is in short sale process, my Realtor asked me to purchase HOA documents, $700 cost to provide for the buyer's bank. Should I pay?

Asked by Dssf_trulia, San Francisco, CA Tue Oct 18, 2011

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Paul Rinde’s answer
You did not mention if you have an aproval letter from your lender. The letter will state if your lender will be picking up the tab for the HOA docs or not. You are in a Short Sale situation and your lender should be covering the expenses of the sale. I would not recommend paying any money untill you have an approval letter in your hand.

Good luck
1 vote Thank Flag Link Tue Oct 18, 2011
You are the seller and you don't have any condo docs? You will have a hard time getting a buyer to pay for the docs not knowing if they are going to be the approved buyer and it would make the transaction go more smoothly if you had the docs available to give to potential buyers. Since it is a short sale I see your reluctance to spend money since you are not making any on the sale. Condos can charge what they want for condo docs, but $700 seems high. Do any of your neighbors have a copy that you could copy?
1 vote Thank Flag Link Tue Oct 18, 2011
I would ask your neighbors or property manager to see if you can make a copy of theirs. I'm sure you received the HOA docs when you bought the condo - I'd try to find them or borrow someone's.

Good luck!
0 votes Thank Flag Link Fri Jan 6, 2012
Most of what you need is of public record, and you should already have a copy of the budget. The condo questionnaire and addendum are the only things I can think of that you do not have access to.

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0 votes Thank Flag Link Tue Nov 15, 2011
Hey there-

If you're short selling your condo, your agent should have generated the list of selling expenses with the title company. This would have included commissions, property tax prorations, transfer tax and misc items such as condo docs. The buyer will need to see the most recent hoa docs which is a normal part of the buying process. The question is when does he get them? If your lender has not already issued an approval letter, then who knows how long it could take? What you could do is order the initial docs for the buyer, and ask your HOA is they will charge again to get any updated items later once your bank approves the short sale (updated minutes, insurance, etc).

Good luck-

Rich Bennett. Realtor
415.305.4911

http://www.76-78Prosper.com http://www.LansingStCondo.com http://www.115-117States.com

Zephyr Real Estate
DRE#01358540
0 votes Thank Flag Link Sat Oct 22, 2011
Sounds to me like robbery.
But how much is the value of the condo?
Are these condos worth 800,000 or more?
Is this a 400,000 condo?
You can try to negotiate with the management company.
Perhaps you can let them know you can send someone in there in the middle of the night and steal the documents for less... Just a joke. I would be at the next meeting and bring up the idea of a new management company as in my 10 years I have never heard more than 375 dollars for HOA docs transfer fee etc.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
harold@southerncaliforniashortsales.org
http://www.southerncaliforniashortsales.org
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Wed Oct 19, 2011
Yes, you will probably need updated HOA docs; so getting them from your purchase packet or a neighbor probably is not going to work. I absolutely agree with Paul, I would not be paying the fees until they have given you a commitment of acceptance/approval. I worked in the Bay Area in 2008, never saw a HOA doc fee of 700; however, many HOA's are really rather out of control.....talk with them directly, attend a board meeting, negotiate the fee. A unit going into foreclosure is far more detrimental than a short sale.
0 votes Thank Flag Link Tue Oct 18, 2011
Hi Dssf_trulia,

In CA, the seller usually pays for the HOA docs. $700 does seem rather high but that may be the 'norm' in SF? Have your escrow company check with the HOA on why the cost is so high and also have them see if this short sale falls through, can you use the docs again for a new buyer or are you going to have to purchase them again for another $700. You want to make sure because HOAs are notorious for charging fees.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Tue Oct 18, 2011
Thanks Tim. My wife did keep all the HOA docs mailed to us, but Realtor told us that we will need most current up-to-date docs. If we need to pay to help the process move forward we will, but hoping we don't have to.
0 votes Thank Flag Link Tue Oct 18, 2011
That seems outrageous nevermind high. Your agent should be able to pull the origianal HOA docs from teh registry of deeds for minimal copy costs and there is no reason the management company can not forward the updates rules and regulations to you by email for no cost. you may also want to knock on neghbors doors and see if they have some you can go and copy . Usually on a short sale or bank owned teh listing agent will print in teh description "buyer responsible for obtaing hoa docs if they want to review."

http://www.trulia.com/blog/scott_godzyk/2011/10/is_a_short_s…


PLEASE SEE MY BLOG FOR TIPS ON SHORT SALES . good luck with your short sale
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Oct 18, 2011
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