In a previous post, I touched on the documents that a seller must provide to a buyer, and here I’ll go through them in more detail. Once all of these things have been received, the “rescission period” will start. This rescission period is the ten-day period required by law that a buyer has to examine the HOA materials, after which they can accept or reject them.
You’ll get the Articles of Incorporation which legally establishes and describes the HOA. You will get the Declaration that legally describes the common elements and individual ownership units, describes limitations on the use of each, and establishes things like maintenance responsibilities. You will also get a copy of the Bylaws which describe how the HOA is governed: who and what comprises the Board of Directors, how meetings are conducted, etc. You will also get the Rules and Regulations that should, along with the Declaration, govern most of the day-to-day operation of the community.
Finally, you’ll get the Resale Certificate that will list all of the things that the owner of the unit will be responsible for and the unit’s balance, if any. This should be accompanied by the Association’s current balance sheet, statements and budget.
It’s important to understand all of these documents before deciding to proceed with the purchase, which is why the law requires a reasonable amount of time to review them. If you have any questions about HOAs, please don’t hesitate to shoot me an email or give me a call.
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