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Subject:  Board member talking with realtors & buyers
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Author Messages
DeidreB
(Virginia)

Posts:106


01/26/2020 3:05 PM  
Should HOA board members of a small single family home HOA seek out contract buyers to talk to them and ask them questions to share with the other members of the community? Or ask seller for info about the buyer other than mandated disclosure info? We have one who calls realtors or stops by open houses or goes into resale homes when realtors are there to get intel about the buyer. I have never seen this before and I have concerns about potential for liability if this interaction inhibits a sale or looks like improper vetting.
SamE2
(New Jersey)

Posts:302


01/26/2020 3:28 PM  
You said should and to that I would say no. If you would have asked can I would say yes. I have spoken to every unit buyer before the sale for the last 10 years at our HOA. Usually the buyer seeks me out (my name and phone number is posted at the pool) but I have introduced myself to people I've een walking around the complex and talked to them. I had one seller accuse me of costing him a sale but in reality it was his next door neighbor that cost him the sale.
SheliaH
(Indiana)

Posts:4280


01/26/2020 4:20 PM  
I think board members should stay out of the buying and selling of the home - they'll find out who the new owners are in due time. If the prospective buyer wants information about the HOA, he or she should start with the seller, who can contact the property manager for information on bylaws, CCRs, etc.

If the homeowner wants to sell the house, let him or her be responsible for getting whatever the buyer wants to see. That could protect the association from accusations of killing a sale because the buyer found out a special assessment is on the horizon or the exterior has CCR violations up the wazoo.

PaulJ6


Posts:0


01/26/2020 4:49 PM  
As a buyer of a few condos, I would find it strange for a board member to seek me out. I get and give all info through my real estate agent. Decent chance that the board member could say or do the wrong thing and lessen my interest in buying so the board member should not do that.
MelissaP1
(Alabama)

Posts:10575


01/26/2020 8:44 PM  
I know that HOA's want to make sure buyers are informed of the HOA but there is a line. That line should stop at the seller who passes the information onto the buyer. Once the buyer becomes the owner, then the board can be okay to contact. Otherwise, it's a nosy neighbor situation.

People don't know that in certain loan situation that the HOA president has to sign off on a PUD form. One time I let it slip about how you did not own your land but the lot the house sat on. Everything else was common area. The buyer bulked for a bit on that information. Nearly killed the sale. That is not what the HOA should be involved in. Lesson learned.

Former HOA President
DeidreB
(Virginia)

Posts:106


01/26/2020 11:27 PM  
Thank you to all for your replies. Very helpful. I am dealing with three board members who are smart and diligent but do not seem to grasp the totality of things like risk and cost benefit analysis and understanding that there is potential for liability in all that they do. Because they are smart and savvy, they can be difficult to convince. Thanks!
SheliaH
(Indiana)

Posts:4280


01/27/2020 4:04 AM  
That's probably the heart of many HOA problems - uneducated board members who have the mindset that the HOA is a type of block club, where people meet to discuss crime trends and the holiday home decorating contest. When I say uneducated, it's not about college degrees or no degree at all, but a matter of common sense and the realization that running an HOA is the same as running a BUSINESS. Even though it's non-profit, HOAs have to be aware of the risk surrounding various issues, whether it's going without a reserve fund that ultimately pays for roof replacement or dealing with homeowners who refuse to pay assessments, although they're legally obligated to do so.

That's why I'm always saying board members need to invest in education - there are articles and webinars around the internet that address various issues in HOA land, and you don't stop with one or two.
MelissaP1
(Alabama)

Posts:10575


01/27/2020 4:12 AM  
Simply ask them "Where in the rules does it say the HOA contacts potential buyers?". It's not in there. The HOA's purpose is to keep the property ATTRACTIVE to potential buyers. That doesn't mean being nosy...

Put it in another perspective. Tell them what reaction do you need to have if someone walks by and says "Nice house is it for sale?". Do you need to run into your house and produce the HOA's documents? Bring out forms for them to fill out? This is what they are basically doing. Make them see what they are really doing when interfering in home showings...

Former HOA President
DeidreB
(Virginia)

Posts:106


01/27/2020 8:34 AM  
Thank you for your reply. I agree with your point 100%. The challenge I have found with education is that the majority of the education out there comes from the real estate-HOA industry which often leaves eager or diligent board members with the impression that they MUST or SHOULD ACT in all or many scenarios.
GenoS
(Florida)

Posts:4276


01/27/2020 2:52 PM  
It's different if the CC&Rs grant the association right of first refusal, or the requirement to pre-approve a buyer (or reject a buyer). In that case the association would have the authority to gather information about the prospective owner ahead of time so it can make a decision.

My own HOA has no such approve-in-advance requirement or right of first refusal when a home is sold. Nevertheless, some board members take it upon themselves to reach out to local realtors and demand that they provide information to the board regarding potential buyers. I think that's out-of-bounds for my HOA, but some people just don't listen. The last Treasurer even provided copies of our documents to a number of realtors and told them to get any potential buyer's signature on a piece of paper that says they've read the documents and rules & regulations. Completely off the rails.
MelissaP1
(Alabama)

Posts:10575


01/27/2020 3:24 PM  
There is no HOA "industry". Each HOA is separate and individual. You don't get a degree in "HOA".

Former HOA President
MarkW18


Posts:1290


01/27/2020 3:35 PM  
Posted By MelissaP1 on 01/27/2020 3:24 PM
There is no HOA "industry". Each HOA is separate and individual. You don't get a degree in "HOA".


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MelissaP1
(Alabama)

Posts:10575


01/27/2020 3:41 PM  
The poster referenced HOA/Real Estate as an "Industry". HOA's are not industries.

Former HOA President
MarkW18


Posts:1290


01/27/2020 3:52 PM  
There are about 350,000 HOA in the United States generally about $100B annually. I will go out on a limb and call this an industry.
MelissaP1
(Alabama)

Posts:10575


01/27/2020 4:35 PM  
I won't go on a limb here and get the fact you don't know what an industry is...

Former HOA President
MarkW18


Posts:1290


01/27/2020 4:50 PM  
I am sure you aren't familiar with Google, it's a West Coast thing, but here are a couple of definitions:

How do you define an industry?
An industry is a group of companies that are related based on their primary business activities. ... Individual companies are generally classified into an industry based on their largest sources of revenue.

Excerpt from Homeowner Associations Industry Profile
Organizations in this industry create and enforce restrictions on what homeowners can do with their property to maintain property values and the look and feel of a particular community. No major organizations dominate the industry.

Some 342,000 homeowner associations (HOAs) operated in the US in 2016, generating about $88 billion in revenue, according to the Community Associations Institute. The institute estimates that owner associations encompass about 26 million housing units.
MelissaP1
(Alabama)

Posts:10575


01/27/2020 4:52 PM  
EACH HOA is separate entities Period.

Former HOA President
MarkW18


Posts:1290


01/27/2020 4:59 PM  
Posted By MelissaP1 on 01/27/2020 4:52 PM
EACH HOA is separate entities Period.



Wish they had a gif with someone shooting themselves in the head. That would be highly appropriate.
MarkW18


Posts:1290


01/27/2020 5:00 PM  
Posted By MelissaP1 on 01/27/2020 4:52 PM
EACH HOA is separate entities Period.



Wish they had a gif with someone shooting themselves in the head. That would be highly appropriate.
MelissaP1
(Alabama)

Posts:10575


01/27/2020 5:02 PM  
HOA is NOT an industry. They are formed by Developers to sell their products. They are SALES TOOLS. They are ONLY incorporated so they have the right to collect money so to spend money on their own expenses.

Where are the HOA trade shows in Vegas?

Former HOA President
JohnT38
(South Carolina)

Posts:790


01/27/2020 5:04 PM  
Posted By MelissaP1 on 01/27/2020 5:02 PM
HOA is NOT an industry. They are formed by Developers to sell their products. They are SALES TOOLS. They are ONLY incorporated so they have the right to collect money so to spend money on their own expenses.

Where are the HOA trade shows in Vegas?





Here's your answer:

https://nevadasfinestproperties.com/hoa-trade-show/
MarkW18


Posts:1290


01/27/2020 5:09 PM  
Why did you have to go and post that?
JohnT38
(South Carolina)

Posts:790


01/27/2020 5:18 PM  
Posted By MarkW18 on 01/27/2020 5:09 PM
Why did you have to go and post that?




Because she asked.
MelissaP1
(Alabama)

Posts:10575


01/27/2020 5:22 PM  
It is put on Nevada Properties who owns HOA's. HOA's themselves are not. HOA's owned by the owners don't have such shows...

Former HOA President
DeidreB
(Virginia)

Posts:106


01/27/2020 5:56 PM  
Sorry -- I was using a term loosely (industry). I was referring to the broader network of HOA business related stake holders and the Community Associations Institute and all other related lobby groups. I have found that there are many HOA stake holders such as realtors, HOA attorneys, community management companies, community service vendors and county and municipality staffs (to name just a few) who pretty much promote a strong view of HOA authority and suggest a strong HOA role. Sorry for my poor word choice. CAI and stake holders would have been better.
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