Cornell Hopkins MBA Realtor Keller Williams Real Estate Doylestown PA 18901 267-261-4063
The fees to produce the documents are paid by the seller. You will see this on the HUD. The HOA may also charge an admin or transfer fee to the buyer - usually a lot lower - like $50 or so. The documents should specify what this amount is or you can call the title company that is handling your closing and they will be able to answer this question for you.
I always look over the disclosure letter in the beginning of the HOA packet. By VA law, the HOA has to produce this letter - it has all of the most important information, like if there are any HOA violations that have to be corrected on the property, lawsuits against the HOA or assessments (extra amounts that homeowners must pay for a specific project). Then, I ask the buyer to review the meeting minutes because if there are assessments expected, etc, the clues will be in the meeting minutes. I also ask the buyer to look over the budget so the buyer can have a good idea of how the funds are used each year. Then, if there are any specific concerns about architectural guidelines, you can either try to find it in the docs or call the condo board or condo management company to clarify it.
Our regional NVAR contract actually says that the seller has to remediate any HOA violations that come up on the documents. But usually the seller doesn't know unless if it is brought to their attention. So your agent would need to tell them about any of these items that they would need to correct prior to closing.
Good luck with your purchase!
Real LIving Eudailey Real Estate VA
Real Living at the Beach SC
But keep in mind that something that seems "normal" to me, in rules and regulations, might seem a red-flag to a buyer who was less familiar with those types of documents. I like my buyers to read through them, and then talk to me or our attorney.
The attorney is scanning the documents for legal issues... the buyer should be scanning the docs for issues that might be important to them... such as "can we grill on the balconies"... "can owners hang laundry out the windows"... "do we have to all have the same window treatments"... that sort of thing.
Thanks for your kind words. I have bailed out many buyers and sellers in situations like this. Unfortunately many of these times it is without compensation other than the feel good for helping others and the complete disgust for helping a non professional inept agent receive compensation.
In any event, should you have ANY questions...you can obviously post them here or if you feel you need more explanation etc. feel free to contact me directly. I am sincere in wishing you well and apologetic that my profession is not shall we say more professional. Unfortunately many buyers and sellers think an agent is an agent and they really don't know what they are missing (or spending) by not using an experienced professional who takes their job seriously.
Erik J. Weisskopf, ABR,CDPE,CRS,GRI
At least you are doing your homework! You should give yourself a pat on the back. It does however often puzzle me why a buyer or seller for that matter...gets this sense of obligation. It's a big purchase..often the biggest of ones life..and they trust it to some inexperienced clown. Same for sellers...when a suggested price is given only to be followed by several (often substantial) price adjustments.
Please do not be afraid ever...to get the service you deserve..and pay for. You owe it to yourself! Best of luck..sounds like you are in the home stretch. Don't forget to ask your agent to see if he can obtain the owners title policy to possibly get you a re-issue rate..This can save you up to several hundred dollars. You can also get the survey re-certified..saving you a few $$ as well!
Erik J. Weisskopf, ABR,CDPE,CRS,GRI
One would assume you have switched agents based on your previous posts. However your current post seems like maybe you have not since you write (choose your agent carefully) The HOA Docs..if "hard copy" typically go directly to the purchaser. If soft copy (electronic) delivery then both the purchaser and the agent can review them (usually).
If the agent accepts the hard copy..it is the same as you accepting it..so..it is not recommended since delays may occur in getting it to you. Like Jay..and others..I Do take the time to point out what to look for and what questions should be asked and understood.
If you do not like the docs..or anything else for that matter...you still have (in VA) 3 days to void the contract from receipt of the docs. Sonal also makes a good point about remediation of any violations...this indeed is contractual..however, enforcement of such can sometimes be difficult. Never assume that because it's in the contract means it will happen. Enforcement is key and many times that means walkaway power.
Excellent answers by the way by Andy, Esther, Jay, Vicky and others.
Please be careful in your review especially with condominium ownership! Best of luck to you and I do hope things work out to your satisfaction.
Erik J. Weisskopf, ABR,CDPE,CRS,GRI
that there are a lot of "clues" that are in the condo docs that can be seriously important not
to miss. It amazes me that client/agents don't sit down and go over the information, since it is so incredibly important!
Some things to look for are adequate reserves, status of operating systems, etc. I hire a lawyer at my expense
to double check everything after I look at. Its the single most important purchase that your Buyer is likely to make. They deserve it.
Fritz Hubig | NAR GREENÂ® RealtorÂ® DC/MD/VA
Phoenix Real Estate Solutions
p. 202.907.3733 | e. email@example.com
I've built and developed condos, and while I feel comfortable reviewing HOA docs with clients, they need to acknowledge that I'm not warranting that they'll never have a problem with the HOA.
I have found that it works best if I review them first and make notes of things that stand out to me. Then, I pass them on to you, have you read them, find out what questions you have and tell you what I've found to be noteworthy. Then, I figure out how to get answers to your questions.
I don't think an agent is worthy of derision, however, if they simply pass the HOAs on to the client.
Frequently, items that go with buying a home boil down to one simple question. Do you want to live there?
I am just being practical. Most of the HOA rules are just about the same, and deal with restrictions and other rules to keep the community value up. If you do not like following these kind of rules, then HOA life is truly not for you. A home purchase is not the time to do battle with an HOA guideline.
I do help all of my buyers after qualifying if they understand HOA's in general. Those who feel adverse to HOA control are asked to commit or kick out the deal. After that, those who still want to move forward will discuss
any outstanding financial issues the HOA has. Like a pending blanket assessment, or hole in the bottom of their pool.
The seller pays for the HOA docs unless you have a contract that states otherwise.
I always tell my buyers what to be looking for specifically (violations, lawsuits or judgements, rules and regulations, and reserve funds in the budget). If my buyer has been asking a lot of questions through the process, I'll often schedule time with them on day 3 of the review period to answer any questions they may have.
Good luck and congratulations on your purchase.