So you’ve reached a deal and are close to completing the purchase/sale of a home. Now that you’ve entered the Escrow process, it’s time to make sure everything is in order. One of the steps to take early on is to obtain a copy of the HOA documents.
It is extremely important to obtain a complete package of Homeowners Association (HOA) documents as soon as possible after the opening of escrow so that Buyer may review them.
By law and per the contract, Seller is required to provide Buyer with that package as Buyer is allowed a specific time period to review and to approve or disapprove of said documents.
The following guidelines will help all parties so that there are not delays during the escrow process:
- The Purchase Agreement gives the Seller the responsibility of providing the documents; however it is customary for the escrow company to assist with this. North Orange County Escrow will order the documents as an accommodation to the Seller. Advance payment is usually required, so the Seller should be prepared to make payment when the order is placed, or if agreed to by both Buyer and Seller, escrow may advance funds from the deposit in escrow.
- Even if the Seller thinks he has a complete set of the HOA documents, a new document package should be ordered from the management company to be sure that it is complete and complies with current law. Some required documents, such as Minutes of recent association meetings, are not likely to be in the Seller’s possession.
- VERY IMPORTANT: The Seller or his agent can help the escrow officer by providing complete and accurate HOA and management company information at the opening of escrow.
- There are time periods expressed in the Purchase Contract for Seller’s delivery of the documents to the Buyer! So the sooner the documents are ordered, the better off everyone will be. Please refer to your real estate agent for any questions you may have with the requirements of the contract.
These guidelines will help ensure that the Escrow process is a quick and satisfying to all parties as possible. Ask any of our Escrow Experts at North Orange County Escrow any of your questions!
by Janelle Cowan