HOA compliance

No. A HOA is a third party to the sale. Potential buyers are not members. You could be sued for damaging the sale. Just keep the owner feet to the ground. The HOA could cut the trees down and send owner the bill. If not paid, then they can lien for the money before it sales. Check with a lawyer first.

As for mandatory, it depends on the laws of the State the Association is in.

VA has a requirement that the seller requests such information from the Association and deliver it to the seller.

I do not know if CA has a similar law or not.

Nancy, I notice that your don't say "who" might supply this info to the prospective buyer. Melissa assumes you mean the HOA.

In Calif., the seller must fully disclose this violation and a great deal of other information to the prospective buyer. The seller asks the Association--either the Board or in your case the MC to compile this info to deliver to whomever the seller says may have it.

Among other items: "(5) A copy or a summary of any notice previously sent to the owner pursuant to subdivision (h) of Section 1363 that sets forth any alleged violation of the governing documents that remains unresolved at the time of the request."

Read more: Civil Code §1368 http://www.davis-stirling.com/Statutes/CivilCode1368/tabid/908/Default.aspx#ixzz2ujrsDJJD
from Davis-Stirling.com.

The HOA/MC may charge the seller reasonable fees to compile and distribute these data.

The HOA is not a "third party" to the transaction in CA. In CA and I believe in most or all other states, the HOA is not a party at all to the sales transaction unless the HOA itself owns the property in question. ( I'm not at all involved in the legal profession.)

Notifying an owner is not enough. It is probably why they are selling. A lien for the cost of removal assures it has to be reported. A simple letter of violation does not. A seller has to reveal certain information but history of their own violations or failure to pay dues is not one of them. A lien for unpaid dues would be on public record. A letter stating they owe dues is not. That is between the owner and HOA. Which HOA does not have a need to reveal directly.

Now Florida does have some odd laws in this area. It is the only one that I know that can make the new buyer responsible for previous owner debt. Otherwise, the HOA will need to address the issue with new owner when it changes hands.

Is it fair? No. Is it legal? Most likely. It is up to the buyer to ask the right questions. The seller it is up to their morals.

Mel raises a valid point. That is how does the HOA be assured a potential buyer is aware of the issue and/or force the present owner to correct the issue?

Also how does the HOA protect itself from being sued for standing in the way of a sale?

I think the answer will vary from state to state. If somehow a lien could be filed on the present owner so any potential owner knows is a good idea but not sure how one can do such.

We all know horror stories of new owners saying but we did not know. I see this tree removal issue reeking of that meaning the new owners really did not know. Somehow the issue was hidden/covered up. Forget by whom, but how does one prevent this hiding/coverup form happening.

I can see it now. The Welcome letter has a violation notice attached.......LOL

If the HOA is self managed, they should be the party handling escrow demands, which would include notifying the parties that they is an existing fine or violation related to the property.

If a management company handles your property, they would be asking on behalf of the association.

John C wrote: "Mel raises a valid point. That is how does the HOA be assured a potential buyer is aware of the issue and/or force the present owner to correct the issue?

The HOA has no need, so far as I know, to inform the buyer of anything whatsoever. But the seller must in CA. And the HOA, via its Board or management company, must provide loads of disclosure information to the seller who--or seller's realtor--provides it to the title company. With the seller's consent, the HOA/MC/Board also would supply that info to the lenders if the seller wants that so that the buyer can get a loan.

If the seller somehow gets away from failing to disclose the violation and new owner gets a violation notice form the HOA, the new owner most certainly would ask the seller to pay for the tree removal. If the Seller refuses, new own most likely would sure both realtors and others. But if the HOA provided the info to the seller , the HOA, I'm thinking, would be off the hook.

JohnC asks: "Also how does the HOA protect itself from being sued for standing in the way of a sale? " How could/would the HOA "get in the way of a sale"?

The OP did not state that someone already has purchased this property, JohnC.

I feel like I'm misunderstanding something. If so, help me out.

What am I missing here? If the house is in violation, why would you choose to NOT inform the buyer? Someone please explain to me how the seller or the sellers agent can get away with NOT doing so? IF the HOA is to give a sellers packet to someone interested in buying the home, why wouldn't it be in their best interest to inform?

"Your honor, I was trying to sell my house and my HOA killed the deal because I was in violation of our contractual agreement with them. When they informed the potential buyer, the buyer wanted me to resolve the violation or they wouldn't make an offer."

"In order for the court to way judgement, both parties have to come to the court with clean hands. So your telling me that your in violation with the contract that you have with your HOA, and because you won't resolve the issue, you think the HOA is responsible for the party not buying your home?"

Only in America do we have to debate on whether to tell the full truth or not.

Melissa

You have flipped your wig!

Melissa

IF the violation went to hearing and the Board voted for a fine or compliance under an ARC and it's in the minutes, I guess I would see you in court.

Obviously since the question concerns a California re-sale, California Statutes applies.

However a similar requirement exists in those States that have Statutes based on the UCIOA. Among the items listed that must be provided to the buyer is – see item (10):

UCIOA
SECTION 4-109. RESALES OF UNITS.

(a) Except in the case of a sale in which delivery of a public offering statement is required, or unless exempt under Section 4-101(b), a unit owner shall furnish to a purchaser before the earlier of conveyance or transfer of the right to possession of a unit, a copy of the declaration, other than any plats and plans, the bylaws, the rules or regulations of the association, and a certificate containing:

(10) a statement as to whether the executive board has given or received notice in a record that any existing uses, occupancies, alterations, or improvements in or to the unit or to the limited common elements assigned thereto violate any provision of the declaration;

Please Melissa

Stay in your neck of the woods!

Melissa confuses 'right' with obligation.

She is also void of the concept of good faith.

Good faith is an abstract and comprehensive term that encompasses a sincere belief or motive without any malice or the desire to defraud others.

This would likely insuate a director from her suit if the information divulged was in fact true regardless of any 'harm' she may feel were caused.

The truth is the truth and the facts are the facts.

MelissaP1, you wrote: “Those records are for HOA members ONLY. A potential buyer has NO right to view those records. They are not members. The HOA has no right to reveal that info to non members. . . . The seller is responsible for disclosing the HOA official documents but not financials, records, or history of the HOA.”
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That may be true in Alabama, but not necessarily in MANY other States.

From the UCIOA, wording that applies in many States, and in particular in those States that have used the UCIOA as a template, which clearly states the information that is to be provided: (Bold added).

Also note the UCIOA “COMMENT” at the end, written by the drafters of the UCIOA that provides additional explanation.

SECTION 4-109. RESALES OF UNITS.

(a) Except in the case of a sale in which delivery of a public offering statement is required, or unless exempt under Section 4-101

(b), a unit owner shall furnish to a purchaser before the earlier of conveyance or transfer of the right to possession of a unit, a copy of the declaration, (other than any plats and plans), the bylaws, the rules or regulations of the association, and a certificate containing:

(1) a statement disclosing the effect on the proposed disposition of any right of first refusal or other restraint on the free alienability of the unit held by the association;

(2) a statement setting forth the amount of the periodic common expense assessment and any unpaid common expense or special assessment currently due and payable from the selling unit owner;

(3) a statement of any other fees payable by the owner of the unit being sold;

(4) a statement of any capital expenditures approved by the association for the current and succeeding fiscal years;

(5) a statement of the amount of any reserves for capital expenditures and of any portions of those reserves designated by the association for any specified projects;

(6) the most recent regularly prepared balance sheet and income and expense statement, if any, of the association;

(7) the current operating budget of the association;

(8) a statement of any unsatisfied judgments against the association and the status of any pending suits in which the association is a defendant;

(9) a statement describing any insurance coverage provided for the benefit of unit owners;

(10) a statement as to whether the executive board has given or received written notice in a record that any existing uses, occupancies, alterations, or improvements in or to the unit or to the limited common elements assigned thereto violate any provision of the declaration;
(11) . . .
(12) . . .
(13) . . .
(14) . . .
(15) . . .
(16) a statement disclosing the effect on the unit to be conveyed of any restrictions on the owner’s right to use or occupy the unit or to lease the unit to another person.

(b) The association, within 10 days after a request by a unit owner, shall furnish a certificate containing the information necessary to enable the unit owner to comply with this section. A unit owner providing a certificate pursuant to subsection (a) is not liable to the purchaser for any erroneous information provided by the association and included in the certificate.

(c) A purchaser is not liable for any unpaid assessment or fee greater than the amount set forth in the certificate prepared by the association. A unit owner is not liable to a purchaser for the failure or delay of the association to provide the certificate in a timely manner, but the purchase contract is voidable by the purchaser until the certificate has been provided and for [five] days thereafter or until conveyance, whichever first occurs.

UCIOA Comment:
1. In the case of the resale of a unit by a private unit owner . . . . who is not a declarant . . . . a public offering statement need not be provided.

Nevertheless, there are important facts which a purchaser should have in order to make a rational judgment about the advisability of purchasing the particular unit.

Accordingly, each unit owner . . . . is required to furnish to a resale purchaser, before the execution of any contract of sale, a copy of the declaration, bylaws, and rules and regulations of the association and a variety of fiscal, insurance, and other information concerning the common interest community and the unit.

2. While the obligation to provide the information required by this section rests upon each unit owner (since the purchaser is in privity only with that unit owner), the association has an obligation to provide the information to the unit owner within 10 days after a request for such information.

Under Section 3-102(a)(12), the association is entitled to charge the unit owner a reasonable fee for the preparation of the certificate. Should the association fail to provide the certificate as required, the unit owner would have a right to action against the association pursuant to Section 4-117.

What part of the SELLER is responsible for providing information? It is NOT that hard to understand. The HOA provides the information to the SELLER/MEMBER. What legal obligations to provide to the buyer is their responsibilty. It is also viewed as the BUYER'S RESPONSIBILITY to be INFORMED. That is by knowing the right questions to ask and to who. Each party in the sale has their own SEPARATE responsibility and to stay in their lane.

What if the member is in violation and your HOA has no fining schedule? How does a HOA enforce rule violation if they do not define the punishment? What if the violation is the rental rule? They need to sell because they are in violation for allowing it to be rental? You can NOT cherry pick your violations to be reported. Hence why DOCUMENTED public filed need to be revealed. That is liens or lawsuits. A notice of violation is PRIVATE.

Sorry you may disagree but reality is not fair. You do not stop someone from selling their property unless they owe you money. It is NOT because the lawn needs mowed.

Gasp! I keep my post GENERAL and do not quote any specific state. It is NOT for me to post what your state requires. That is where the person takes the GENERAL advice to put them in the right dirction.

What am I exactly arguing that has not been posted in support of my view? Seems I have stated multiple times and ways the SELER reveals the information to the buyers NOT the HOA. What is the problem? I do not care what the seller reveals to the buyer just as long as someone else does not.

Stop posting rules and laws for your state only like everyone lives under them. You do not even know how to translate the laws you post. That is because a PRACTIONER of law does that. I do not play lawyer by posting laws as because they change or are out of context. Consult a lawyerto decide what laws are. NOT a google search.

Posting what you know is better than just posting.