As lender’s underwriting requirements tighten, one of the conditions may include providing information about Homeowner’s Associations (‘HOA’). Many subdivisions were created with HOA covenants and, if so, the seller must obtain and provide the contact information for the HOA so that certain items can be verified. Such items include:
-The amount of the (annual/quarterly/monthly) fee.
-What period of time it covers.
-Who collects it and how.
Although this seems simple enough, many HOAs are loosely managed and others are completely inactive, meaning there is no fee, no annual meeting and no one who can verify this information.
When taking the listing and reviewing the deed and covenants with your seller, if there is a reference to an HOA, collect such information up front from the seller so as to not delay the financing and/or closing process.