Going through HOA documents is a complete pain. Going through the financials is even worse. I am pretty sure that the Geneva Convention has it listed under inhumane forms of torture.
It is, however, a necessary trial that all condominium and HOA managed community residents must undergo.
The reason is that the buyers must make an informed decision whether or not to invest in the property and in the accompanying HomeOwners’ Association. The danger of not studying the documents is that the HOA could be insolvent. That means that if and when an emergency strikes, the HOA will be forced to create a special assessment for the homeowners that could mean thousands of dollars out of pocket.
Even routine maintenance is possibly subject to a special assessment or even put off until there are funds to upgrade the property if the HOA does not have the funds to cover costs.
There is help, though! We have A Guy. We have THE Guy. His name is Carson and for a reasonable fee (trust me, it’s totally reasonable when the other option is a surprise $20,000 bill) he will examine the HOA financial documents and provide a report on the financial viability, solvency, and stability of the Association. We always recommend this service to our buyers so they can protect themselves.
To order a report or learn more about the services Carson offers, go to CIDA REPORT.
Buyers should also read the CCR’s, Bylaws, Rules, and all of the other accompanying documents of the HOA as they will state everything that the homeowners need to know, like when and where dues are sent, when trash cans need to be put away, and if homeowners are required to dance naked on hot coals under the new moon.
Please don’t just sign the form that the documents have been received. Please read them. Carefully.