May focus: Selling in a small HOA
Real estate transactions with a property in an HOA have requirements that non-HOA homes don’t. Here’s what you need to know.
It’s spring home sale season.
Your sale in a small HOA will likely involve reporting on financial and other information about the association required by real estate laws, mortgage lenders, attorneys, escrow, or other parties.
What kind of information?
A lot about HOA and owner account finances: Annual and year to date financial reporting, accounts payable and receivable, delinquencies, HOA funds to deal with association needs, seller and buyer funds at closing.
Legal and bylaws compliance information: Things you don’t even think about, such as lender obligations to HOA expenses, litigation, legal organizing details about the homeowner association, resale or deed restrictions, use restrictions and more.
Association and ownership details: Project completion or conversion dates and details, reserve maintenance planning, and authentication of owner-occupied, investor, multiple, and second home ownership.
Insurance and financial security of HOA accounts: HOA insurance coverages and liabilities, details on appropriate access controls for HOA funds.
Who completes the reporting and forms?
If the HOA has a managing agent, they fill out the questionnaire. The borrower or their agent cannot fill it out directly.
Don’t worry!
MicroHOA keeps financials and community records up to date so you can get fast reporting that will turn your transaction needs around quickly, to keep your transaction running smoothly and on time. And we keep the finances organized in a way that meets the expectations of mortgage underwriters.
No surprises.
Costs for reporting vary based on what you need for your transaction, and where you live. Some of the resources the seller needs are always available FREE to sellers on the HOA owner portal. Others have customary fees for questionnaires, certification, and other reporting for a transaction.
MicroHOA partners with HomeWise Docs to make this process organized for owners, agents, and lenders. Go to https://www.homewisedocs.com/, or follow the 'Need documents?' link at www.microhoa.com.
Resources to guide you.
If you are thinking about selling or refinancing your HOA property, MicroHOA has put together a resource of FAQ’s and requirements to help with what you’ll need to know as you prepare for a transaction.
Also, check these tips for a smoother experience when you’re selling your home in a small HOA.
Questions? We want to help. Log in to your owner portal and submit your question to MicroHOA or your board of directors. portal.microhoa.com
