What are the requirements of an HOA disclosure document?
In California, homeowners associations (HOAs) are legally obligated to provide certain documents to prospective buyers in order to give them an accurate picture of what the association entails. This disclosure document is known as a “HOA Disclosure Package.” The HOA Disclosure Package must include the following items: 1. A copy of the association’s recorded governing documents, including its Articles of Incorporation, Bylaws, and any Rules and Regulations. 2. A list of any exclusive services the association provides to its members, such as golf courses or swimming pools. 3. A copy of the association’s current budget. 4. A statement of any special assessments that have been or will be charged to the members. 5. A list of any current and pending litigation in which the association is involved. 6. A copy of the association’s insurance documents, including its Declaration of Coverages. 7. A list of any current or unpaid fines that have been imposed on members. 8. A list of special circumstances that might exist in the community, such as nearby developments, construction or hazardous conditions. The HOA Disclosure Package must be provided to prospective buyers at least 10 days prior to the closing of the sale. The document must also be accompanied by a written acknowledgment form which the buyer must sign in order to acknowledge that they have received it.
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