Buyers will purchase almost anything, if…
It is my experience that Buyers will purchase almost anything, if issues, defects, and/or problems are disclosed up front.? What no one likes, however, is learning about problems after the property is under contract.???
I knew the deal was in trouble when the?Homeowner’s Association (HOA) “Common Interest Development Disclosure Statement”?in the Seller’s?”Pre-Sale Disclosure Package” (provided to my Buyer prior to writing his offer)?stated that the HOA was not anticipating an increase in HOA dues and/or any special assessments, when in fact my Buyer’s lender request for the HOA to complete their?”HOA Condominium Certification” (after acceptance of my Buyer’s offer)?stated the contrary.?
This can happen several ways and in?most cases, be avoided?with an observant, inquisitive, and experienced?fiduciary for the Seller’s agent.?
(1).? Neither?the Seller nor the Seller’s agent?were?monitoring the current (closed door) HOA Board of Directors’ meetings or discussions regarding budget concerns and/or possible special assessment activities.
(2).???Neither the Seller nor the Seller’s agent had?provided the Buyer the?most recent HOA disclosures, HOA minutes, and/or updated/current “Common Interest Development Disclosure Statement”?that reflected the “anticipated” change in HOA dues.
(3).?? Neither the Seller nor the Seller’s Agent had disclosed to the Buyer any potential?unresolved or contemplated HOA budgetary increases, as they became known or available.
My question to the Seller’s agent:? Why weren’t?these issues either?disclosed and investigated??prior to putting this property on the market and at the very least, made known to a Buyer first rather than by a 3rd party?
Now, my Buyer, with this newly discovered information,?will either re-negotiate the terms of the sale (in his favor) or walk away from the property.??
Sellers are able to?sell almost anything (without giving away their money), if they understand their?duty to disclose and their?task is?to chose their agent wisely.
December 16th, 2007 at 7:51 pm
Ann,
This is a great point. I currently represent a seller of a condo. I include the HOA Condo Cert in the Disclosure Package, and keep a complete printout of all HOA docs at the property in additional to pdf copies available online – after reading them through. Now, with my condo listing still on the market, I need to make sure all the seller info is up to date. I find some HOAs are easier to work with than others.