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HOA Financial Difficulties

Our HOA is loosing money with the amenities and has had a $1 million revenue loss in the last year. Since the HOA prepares a packet of documents for the seller and buyer at closing, are they required to disclose any financial info to that effect. We do have a $2000 transfer fee when you sell your home. I know the seller has a duty to disclose.

1 Response

  1. dennisl

    Susan,
    The HOA resale disclosure laws for Arizona are very weak at best and was the initial subject that i tried to address when i first got involved in the legislation. I attempted revised legislation for the first three years and had nothing but resistance from the HOA Industry, the kiss of death was resistance from the Arizona Realtors Association. They did not want legislation that would force the association to truly disclose the extent of their mismanagement of money or their treatment of homeowners that could risk or impact the sale of homes in these communities. This is truly a buyer beware state that requires home buyers to have to investigate on their own their true risk of buying in one community over another. Under Arizona law any association greater than 50 homes or units the association is responsible to disclose the specific information identified in law and reflected word for word in the Real Estate contracts. For an HOA the statute is ARS 33-1806 and for a Condo the language is exactly the same. Some financial information is required based on a current state of affairs without any variances year to year. I’ve had associations that planned special assessment on homeowners of $5,000 that were applied one week after a person bought their home without ever having that fact disclosed to them prior to when they bought all without violating any law. Transfer fees are another pet issue of mine that are abused to no end by associations. They however must be disclosed no matter how inappropriate they are.
    Dennis

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