Real Estate listing should include that property is in an HOA

There's a fine line about expecting the HOA to hand over information to a potential buyer. You have to remember that a potential buyer (Until closing is finished) is NOT a member of the HOA. Once that person is considered an OWNER, then they become a HOA member and can have access to the HOA financial information. Otherwise, it's like handing over the HOA's information to complete strangers...

Keep in mind a HOA can reveal to a potential buyer things like it's existence,the amount of dues paid, what those dues payments cover, some general rule information, and where maybe to find the CC&R's (they don't have to give you a copy nor the seller). However, they really don't have to reveal any of that information but is a courtesy some HOA's have. I used to print out a brochure and have it at our mailbox area for potential buyers/current owners to review. It was a useful tool to handout to people.

Not all Real Estate agents are created equal. I often call many of them "Used Cars Salespeople of homes". There are some good ones but many bad ones as well. Some just don't do the research about the HOA to put it in their sales pitch. They may be trying to avoid it as many buyers are against HOA's. It's again up to the buyer to do their due diligence and ask. It's also why I use a Buyer's agent when purchasing. They work for you and will help find out certain information on your behalf. They just split the commission with the seller's agent. Some states don't have this option so check around...

I've seen my own HOA have advertisements in local ads NOT listing the HOA in it. It's a surprise to me it's not done. However, most people know there's an HOA just by reputation. Our area doesn't have many HOA's so they are pretty recognizable which subdivision has one. Otherwise, it could be very difficult to know.

Oops,

that link was only partial. Here is the link to what VA requires in the disclosure packet

Yes, it is a good idea to see this information. Just like all other corporations, they must disclose issues such as lawsuit involvement or other negative issues. If you ever get a "Prospectus" as a shareholder in regular corporation, you will find this information in there. It's usually hidden about half-way in or in a special spot that needs almost the whole document read to find it. A corporation must disclose certain negative reports not only positive ones to their shareholders. Owner's being considered "Share holders" in the HOA, means they are to be informed of the corporations "health".

However, as I stated before, you are NOT a shareholder or a HOA member until you have signed that dotted line. Which means the HOA doesn't have to release information to you as you are NOT a shareholder/nor member of the HOA. You can indeed ask questions of neighbors, HOA BOD, or the management company. Just don't expect them to give you answers or documents. They have a vested interest and can disclose only what they want if they want.

Do the laws need to be changed? I wholeheartedly agree. There should be more disclosure to buyers when purchasing in a HOA. It's really a matter of the information is out there but no one knows how to find it. How many of us knew to go to our Court house for a copy of the CC&R's prior to buying? How many realtors really understand HOA's? Surprisingly little as they aren't responsible for informing you of the HOA's rules. Did you know your getting denied certain types of loans because of the health of your HOA? Certain loan programs or rates are effected by the number of overall rental property a HOA may have or their financial situation. Would you know to ask your mortgage broker these questions? Did you ever see that piece of paper the closing attorney had you sign about there being a HOA? I am sure they breezed past it after about 20 minutes of non-stop signing of paperwork...

This is the information the general public doesn't even know but is how they are supposed to get information on the HOA they are buying into. It's usually lessons learned while living in a HOA that drives people to avoid them...Making it that much harder to sell your property in a HOA....

Susan W.
Maryland law also requires that the seller provide all this information to a potential buyer in what is known as a "resale packet." Seems like some states need to catch up.
Jeanne

I agree 100% a listing should state a property is in an HOA the first who should be held responsible are the listing agent and the homeowner next the management co. then title company and last but not least the purchaser all of these people had a job and were getting paid to do a job, past due amounts should be paid by all of these "professionals" with the first on this list paying the most and the buyer paying the least. I sure wouldn't want to live anywhere I had to (hunt) somebody down for answers.