Discovering the financial status of a home owner''s association?

Contacting the home owner's association or property management office and asking about their finances is one way to obtain limited answers to some basic questions about the HOA. The phone number should be listed in the MLS in the property management contact information field, and on the Seller's Disclosure form in section 5 on page 3. When making an offer you can make the offer contingent on satisfying the buyer's need to review the HOA documents by filling out the HOA Addendum and checking section A.1.; section B. of the HOA Addendum also offers additional protection to the buyer. Hope this helps.

Financial information is part of the resale certificate that all homeowners Association's are required to give to owners and prospective buyers upon request (per property code). The resale certificate will also contain the governing documents for the Association and other important information. The management company will usually have a reasonable charge for producing these documents. These documents are too often overlooked, but are very important for determining the financial and overall health of the Association. This is particularly important for condos where the Association is responsible for maintenance of all the common elements and exterior of the buildings etc. The Buyer or buyers agent should ideally make sure any contract they enter into stipulates to receive the resale certificate with enough time before closing so that the buyer can properly review and get any concerns addressed etc.

If all else fails, you can write an offer subject to the buyer being able to review the financials of the HOA. Kelly Jackson REMAX Southwest 281-652-6873