05 Jun HOA Obligations When Selling Your Home
in HOA / COA
When you list your house for sale, you have a lot on your mind. It’s easy to forget about your COA or HOA. You may not think you need to include them in your plans. But you do have certain requirements. Listing and showing your house will be less overwhelming if you follow all of the rules. Know the HOA obligations when selling your home, so that it’s a smoother process for everyone.
Putting Your Home on the Market
Review your HOA rules and legal rights, once you decide to sell your house. Although you’re not required to provide advance notice of intent to sell, follow all of the regulations regarding a property transfer. You should also make sure that your dues are paid in full. Tha’s because the HOA can place a lien on your house and prevent a sale if you’re in arrears. Check the bylaws to see if an inspection report is needed, and how to resolve any issues (maintenance or neighbor related) that could affect new residents.
Making All Necessary Documentation Readily Available
Remember all of that paperwork when you bought your home? The new homeowner is going to need the essentials, particularly the Declaration of Covenants, Conditions, & Restrictions.
There’s plenty of fine print of these documents that influence joining an HOA. There are rules about pets, insurance, parking, rental, and voting policies. Disclosure laws may vary according to state, however, you should reveal considerable matters of concern, even if it turns potential buyers away or decreases the asking price. It’s better for interested parties to learn about lawsuits from you now, than after they sign papers. Follow the limitations as set forth by Ohio 5311.091 Examination of Books, Records, Minutes.
Gathering all of the documents for a new buyer often includes extraneous notices, and is costly. If you need the HOA’s assistance, request a “Resale Package,” which is a lower fee, and should only be comprised of the essential, legally required documents.
Assessing Any Prorated Fees is Part of the HOA Obligations When Selling Your Home
It’s a common misconception that you don’t have to pay upcoming monies if you’re close to a move-out date. So just as with renters who still have to make payments the month before they leave, HOA units are still bound to dues. Notify the board if can’t pay your HOA fees, instead of ignoring them. If your dues are owed after the sale date, discuss the terms with the buyer, to assess how to share prorated amounts.
You also need to inform the buyer of a transfer fee. As explained in Ohio 5301.057 Transfer Fee Covenant, it can be a flat cost or a percentage of the sale price. Knowing how all of the monies break down is another reason why it’s worth (re)familiarizing yourself with what the HOA obligations when selling your home.
Notifying the Board of Closing
Enlist your real estate agent and a member of the HOA board as your points of contact during prospective offers, negotiations, and final closings. Clear lines of communication prevent misunderstandings and decrease delays caused by missing or erroneous information. It also makes it easier for timely notifications to reach everyone involved.
Moving is stressful, regardless of how prepared you are. Consult Rapier & Bowling to assist you with reviewing the HOA obligations when selling your home. We’ll stay with you through the process!
PHOTO: Rental Realities / CC-SA 2.0