Home buyers are often so focused on the condition of the home they are purchasing that they forget that the community information may be just as important. When buying a home in Arizona, all buyers should be sure to review the Homeowners’ Association (HOA) disclosures as part of their due diligence.
Remember – the best form of consumer protection is knowledge!
Who is responsible for providing the buyer with the HOA disclosures?
It depends on the number of units in the community. Typically, if there are less than 50 units, the information comes from the Seller; if there is greater than 50 units, it comes from the Home Owners Association (HOA).
Review HOA disclosures and financials
What kind of information is disclosed?
- the amount you will be paying in assessments to live in the community
- bylaws and rules of the association
- Conditions, Covenants & Restrictions (CC&R’s) of the community
- any unpaid regular assessments, special assessments and assessments due and payable by the Seller before you take possession of the property
- current reserves and reserve studies, budget and financial statements.
- pending litigation and claims associated with the community (if applicable)
- insurance and history of alterations and improvements.
When negotiating your purchase contract with the seller, you will also sign an HOA Planned Condominium/Planned Community Addendum, which will cover some of the information above -including regular and special assessments, HOA transfer fees and any capital improvement fees that are payable by the buyer and/or seller when a home is sold in the community.
When does the buyer receive the disclosures?
All HOA disclosures must arrive to the Buyer within ten days of contract acceptance. The Buyer may disapprove of any items in the disclosures within 5 days of receipt.
For additional disclosure information, read our article on the Buyer Advisory disclosure.
Reach out to us anytime with any questions on the Buyer Advisory, the Residential Purchase Contract, or the home buying process in general. We are here to help!
Looking for DC Ranch homes for sale? Contact me to start your search today.
Don Matheson
Realtor | Founder
The Matheson Team – RE/MAX Fine Properties
21000 N. Pima Rd., #100, Scottsdale, AZ 85255
480-360-0281
don@scottsdalerealestate.com
