My New Blog

Common Interest Community (CIC) documents are now called "Association Documents" in the new 2012 real estate contract.  The seller is required to provide these documents to the buyer, per the contract, and it is the seller's responsibility to be certain they are providing all of the information required, and the most updated information.

As soon as the property is under contract, these documents should be ordered  to adhere to the deadline specified in the contract.  These forms provide the buyer with information such as the financial status of the HOA, meeting notes, declarations, bylaws, rules and regulations, etc., from the homeowner's association.  Some associations charge a fee to the seller.

What you need to know about the HOA Status Letter:

The status letter is ordered by the closer a week or two before closing and gives the closer a written status of how much the dues are for the property, when they are charged, how current have they been paid, and the balance of any outstanding amounts the title company needs to collect at closing.  This letter typically contains a transfer fee or a status letter fee.  It is designated in the contract who pays these fees - seller, buyer, or split.

New and Important Changes Regarding Fees:

More and more management companies are requiring payment of this transfer fee or status letter fee up front.  They will not issue the title company the status letter until they have received their fee.  The real estate agent should be prepared to call their client, depending on who is paying.  The title company then either needs to have the party provide a credit card for this payment or provide a check up front, depending on what is required by the management company.

These charges used to be paid at closing, but now these companies are requiring payment up front. 

This information was provided by Land Title who also have a full service HOA department and will provide association documents for a fee.