Complexity
Covenants, bylaws, rules, budgets, reserve studies, insurance
policies, meeting minutes, and enforcement policies can create
obligations and risks that go beyond professional real estate guidance.
HOAs Explained Chapter 2 – How they are formed and operate.
Reliance
A casual opinion can become relied-upon advice. Even a well-intentioned comment like “this HOA looks fine” or “that rule probably
won’t matter” may later be treated as professional guidance if the
buyer feels misled. It’s not worth the potential liability or risking the client relationship.
HOA Risk
HOA risk is buyer-specific. A community that works well for one
buyer may be a poor fit for another, based on pets, rentals, parking,
architectural plans, budget tolerance, lifestyle, or future resale
concerns. HOAs may have similar corporate structures, but their
governing documents and board directors make them all different.
HOAs Explained Chapter 1 – Over 70 million people live in one – could you? Should you?
Hidden Issues
Important problems may be buried in the documents. Special
assessments, underfunded reserves, litigation, insurance gaps, rental
restrictions, enforcement patterns, and board dysfunction are not
always obvious from a quick review.
“Know Before You Close™”
Indemnification by Referral
As with the other due diligence chores, the professional approach
is referral, not interpretation. Realtors® best protect themselves and
their clients by encouraging their buyers to read the HOA documents
carefully and consult qualified professionals before the objection or
cancellation deadline expires.
“I designed and wrote HOAs
Explained™ specifically with buyers
and their Realtors® in mind during
due diligence. ”
Chuck Fowler, CMCA™ Author
Order your office copies today as gifts for your
HOA buyer clients.
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