New Move-Ins?

Started by JannaJ • 4 replies • 2426 views

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JannaJ (Louisiana)
Posts: 1

Posted:

Hi. I am the new secretary to my HOA and things aren't really in order. There is no set way to know when new people move into the subdivision to be able to pro-rate dues, etc. We do not have a management company. How do you suggest we go about finding out when new people move in or out? We are in a large city and none of us have the time to spend hours at the local court house researching the conveyance records. Any help would be much appreciated!

hoatalk (California)
Posts: 599

Posted:

I have seen the pro-rating of dues happen at the closing of the home. For example, the current homeowner has paid for the next 3 months, but is selling today. So, at closing, the current homeowner is refunded the 3 months (on the closing doc, not by the HOA) and the new homeowner pays the 3 months to the current homeowner. The HOA is not involved in this case and just continues to send bills to each address. The bill could have a change of owner form in it so they tell you that there is a new owner.

I guess you could also require homeowners to file for a refund when they sell, if it is not customary to pro-rate at closing in your area. Have them send you a copy of the HUD-1 closing form (the summary page). This will show the closing date and will show if the homeowner already got a refund from the new homeowner.

It would be unreasonable for anyone to expect the HOA to track down when homes are sold. It has to be the other way around.

Another way is if you have amenities, like a pool. If people need annual pool keys or anything like that, then they have to come ask for that and you will find out about the new people.

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LisaS (Illinois)
Posts: 341

Posted:

I agree. As a VP and a Realtor, it is customary for dues to be prorated at closing instead of by the HOA.

Most attorneys require a letter from the HOA stating that fees have been paid/are outstanding/etc. We require the closing date and buyers name in order to issue it.

Upon stated closing date we send a "Welcome Letter" telling the new buyer where to find our Covenants, contact us, etc. It helps keep track.

AndrewS5 (Oregon)
Posts: 3

Posted:

Janna,

As others have stated, pro-rating dues is not the responsibility of the HOA. Just as the HOA is not responsible for pro-rating property taxes. This is all done (or should be done) by the title company at closing.

TimB4 (Tennessee)
Posts: 21,046

Posted:

Andrew,

Excellent point. However, this post is over 6 years old. Since laws change, it's best to start a new thread than reactivate old threads. Otherwise it can become confusing for readers since what was good advice then may or may not be good advice now.

Example: When this thread was started the housing bubble hadn't bust. When the housing bubble burst, new laws and guidelines were created which is having lenders look at the financial health of the Association (as well as the borrower). Because of this new practice, lenders are requesting information directly from the Association which would certainly be an indication that homes are being sold or refinanced.

Again, an excellent point.

BTW, Welcome to the forum.

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