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RyanP (Missouri)
Posts: 1
Posted:
We have recently reactivated our association and will soon begin to charge dues again. Our main concern is how do we alert title companies, real estate agents, MLS, etc., that we have annual dues in our association? There has to be a simple way to do this, right?
BradP (Kansas)
Posts: 2,640
Posted:
Ryan:

Assuming you have done all the legal stuff in recording documents that allow you to lien no there is not simple way I know of. Contact the title companies and the real estate companies and let them know. at the end of the day if the documents are properly recorded it doesn't matter if the title companies know you still have authority to collect your dues.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
The only ones that really care about the dues is the mortgage companies and HUD (Housing and Urban Development). The banks/mortgage companies need to know so to figure out if you can afford the house or not. However, it's nearly impossible to know who and what loan company any potential or existing owners have. So to that effect is why I mention the Housing and Urban Development department of our government. They do most of the "dirty work" for you. Meaning they send out a questionaire (Usually on FHA/government backed loan closings) for the HOA to answer and sign. That form has the questions on it that pretty much "appraises" the HOA. You may even see this section on a regular appraisor's form when they appraise a home.

Typically, this form is a requirement of the loan approval/closing of certain types of loans. Being that your HOA has been inactive for so long this step may be overlooked by the banks/mortgage companies. I would make a few calls to some mortgage brokers and ask about the HUD form. You may have to phrase it a few different ways. However, I believe it's most likely FHA or government back loans that this form is involved in. There are several types of mortgages out there and this form isn't part of that process. However, the data on that form is important for ALL mortgage companies. It tells them of the "risk" level when deciding what loan programs that area may qualify or not qualify for. Very complicated. That may take a knowledgeable mortgage broker/real estate person to explain all that...

Former HOA President
LarryB13 (Arizona)
Posts: 4,099
Posted:
Ryan:

In Arizona, state law requires that each HOA record a statement identifying its management company (or contact person if self-managed). The recorded CC&R's are the notice that the property has an HOA and the recorded statement alerts the title companies and other interested party who to contact for additional info. Prior to the time I became secretary in 2008 we had not recorded the statement and we had a continual problem with private sales or inheritances where the new owner claimed to have recieved no information. After recording the statement those situations dropped to almost zero.

See if there is a similar requirement in your state.

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