Fwd: ADVISORY: More PROTECTION for Buyers - More RESPONSIBILITY for Agents & Community Associations
Buckingham HOA
From: The Alabama Concerned Homeowners Alliance <ac...@knology.net>
Date: Mon, Apr 9, 2012 at 7:42 AM
Subject: ADVISORY: More PROTECTION for Buyers - More RESPONSIBILITY for Agents & Community Associations
To: The Alabama Concerned Homeowners Alliance <ac...@knology.net>
More protection for Buyers - More responsibility for Agents & Community Associations
The addition of MANDATORY Multiple Listing Service (MLS) data fields containing homeowners association (HOA - A.K.A. Community Association) contact information is scheduled to take effect this week. Sellers listing their property for sale displayed in the MLS will have to provide association contact information to their listing agent; however, this data will ONLY be available on agent reports and NOT on customer printouts, placing responsibility for a greater standard of care on agents.
Associations can expect to start receiving requests from their member sellers who will most likely have received a purchase offer contingent upon obtaining a timely, satisfactory response and approval of material information such as, but not limited to, the questions listed below.
1. Covenants & Bylaws for all portions of the community, including all supplementary filings
2. Management company, Developer, HOA Board contact information and incorporation details
3. Current budget, checking, savings, and reserve fund details including expense projections
4. Are HOA funds kept in a separate HOA account; are two signatures required on all checks?.
5. HOA debt level and projected shortfalls
6. HOA dues and all other expenses to be paid by the homeowner; history of special Assessments and future expected assessments
7. Number and percentage of existing delinquencies and liens
8. Pending litigation by or against the HOA and/or unpaid judgments or disputes
9. Are amenities complete; are homeowners required to fund current or future amenities
10. Is there current availability of phone, cable and internet, other than wireless, in all community phases?
11. Has control of the HOA been turned over to homeowners; if yes, provide date
12. Date of expiration of original and extended Declarant authority
13. Does the developer reserve the right to retain control of any amenities; if yes, please identify
14. Does the HOA maintain any non-owned property?
15. Have amenities/common are been deeded to the HOA?
16. Is the community subject to additional phasing (community expansion);
17. Summary of insurance coverage, fidelity bonds, and acknowledgement of annual tax filings
18. Is subject property in compliance with Architectural Control rules and covenants?
These questions are mere suggestions and not inclusive for that required for informed consent. All parties should seek professional advice.
While there will most likely be some resistance across-the-board on disclosing requested information, associations, and their managers, should make every effort to respond in the best interest of their members to avoid potential liability resulting from the loss of a member’s sale.
When purchasing property in a community association, the purchase goes beyond the property lines with purchasers fractionally assuming the positive and negative condition of the association. To learn more about promoting community association disclosure, accountability and protective solutions, visit the Alabama Concerned Homeowners Alliance website at www.alabamahoa.org, contact them by e-mail at ac...@knology.net or by phone at (256) 829-8774.
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