Home Buying in Phoenix>Question Details

Karyn, Home Buyer in Phoenix, AZ

I am considering a townhouse in Phoenix. However, I am concerned about the financial standing of the HOA.

Asked by Karyn, Phoenix, AZ Sun Jul 20, 2008

Further, I 'd like to know about the financial reserves and the capital plan for this HOA. Is the seller required to provide this information to me or is it my responsibility to obtain the documents?

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Answers

7
Have your Realtor also request copies of the minutes from the HOA meetings from the past 2 years...you will learn a lot from these docs!
Web Reference: http://www.cindihagley.com
1 vote Thank Flag Link Sun Jul 20, 2008
The Hagley G…, Real Estate Pro in Pleasanton, CA
MVP'08
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Karyn,
You have 5 days from receipt of the HOA documents to cancel the purchase contract if there is anything you do not like in the documents. There are rules on how to request the documents depending on the size of the HOA. Simplier, ask the Title Company to provide the documents. Because I am not aware of your entire situation, to achieve the best and correct answers, refer to your buyer's agent.
Catherine
0 votes Thank Flag Link Sun Jul 20, 2008
You can ask for an accounting on the project. You can also ask if their are any pending assessments.
Web Reference: http://GetPrequalified.com
0 votes Thank Flag Link Sun Jul 20, 2008
Karyn,

I wanted to follow on the previous comments to your question. The Arizona agents have provided excellent information on how the HOA docs can be obtained and you need to read them carefully. But Cindi brings up a good point about reading the HOA meeting minutes for items that may not yet be in the official documents. There is a condo association locally that is considering a multi-million dollar repair project, but since it has not been approved, it is only vaguely mentioned in the HOA documents. But if one were to request the meeting minutes, it would show thorough discussions over the past 6 months on how to proceed with the project. You can never have too much information...
0 votes Thank Flag Link Sun Jul 20, 2008
if the buyer uses the HOA Condominium addendum and the HOA has 50 or more units, then the seller must notify the HOA and then HOA is required to provide financial info. I've talked to HOA's that won't give out this info without the seller's written request. If fewer than 50, seller must provide this info.
0 votes Thank Flag Link Sun Jul 20, 2008
Sellers are required to provide you a copy of the HOA's CC&Rs. They are not required to provide you the financial docs/capital plan for the HOA. That is for the buyer to investigate as part of your due diligence.
0 votes Thank Flag Link Sun Jul 20, 2008
Hi Karyn

First of all I hope you have a Realtor representing you in this purchase. I also hope you are using the Arizona Association of Realtors standard forms which gives you as a buyer rights to evaluate and reject if needed the HOA information. In the standard contract the seller is typically obligated to provide this information to you and then you have 5 days to disaprove.

You are correct to want this information and to evaluate the strength of the HOA.
Web Reference: http://www.McVinua.com
0 votes Thank Flag Link Sun Jul 20, 2008
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