These statutes are examples of laws that have been established to protect the interests of prospective purchasers who are considering acquiring ownership of properties governed by homeowners associations. The statute provides the form sellers must use to disclose the required information.
#HOA STATEMENT CODE#
In fact, most states have specific Disclosure Statements and Resale Disclosure Certificates which are issued by the state or real estate associations that summarize the specific information prospective purchasers are entitled to have.Īrizona Revised Statutes Section 33-1806 (§ 33-1260 applies to condominiums), obligates the seller of a property that is subject to covenants to deliver to a purchaser the association's governing documents and information required by subsection A of the statute.Ĭalifornia Civil Code Section 4525 provides that an owner who is selling a property located within an association must provide specific information and documents to the prospective purchaser as outlined in the statute.įlorida Statute Section 720.401 (§ 718.503 for condominiums) provides that a prospective purchaser of a property must be presented with a homeowners' association Disclosure Summary before executing the contract of sale. Seller's Obligation to Disclose HOA Documents & InformationĪs mentioned above, most states have specific disclosure laws that require sellers to inform prospective purchasers about implied contractual obligations, such as payment of maintenance fees, and restrictions limiting the use and occupancy of a property. Violating the terms may also constitute a breach of contract. Therefore, it is very important that prospective buyers carefully review the terms of each of these documents because buyers will be contractually bound by them once they acquire ownership of the property. These documents are legally binding based on the implied contractual agreement as a homeowner member of the community.
Rules and Regulations - Details how the CC&Rs are interpreted and implemented. Information about architectural restrictions, property use restrictions, property maintenance standards, and more.Īrticles of Incorporation - Includes basic information about the HOA including the name of the association, its location, and the purpose of the association.īylaws - Set out the technical rules and procedures for things like voting, the election of directors, and term limits. Basic Homeowners Association Documents and Hierarchy of AuthorityĪll associations have the following basic set of governing documents (listed in order of hierarchy) that dictate how a community may be governed:įederal and state law - Unless the statute defers to the association's documents.ĭeclaration of Covenants, Conditions & Restrictions (CC&Rs) - Contains the rights and responsibilities of each member and the responsibilities of the HOA to its members.
0 kommentar(er)
