Understanding and Ordering HOA Documents
HOA Status Letter
The status letter is ordered by the closer three to four weeks before the closing. It gives the closer a written status of how much the dues are for the property, when they are charged, current standing of payment, and the balance of any outstanding amounts the title company needs to collect at closing. This letter may contain a transfer fee (sometimes called a change of record fee) or a status letter fee charge, or sometimes both.
Upfront Status Letter/Transfer Fees.
More and more management companies are requiring the status letter fee up front and delays in payment may result in difficulties in receiving the status letter in time for the scheduled closing date without rush fees. In these cases, they will not issue the title company the status letter until they have received their fee. The real estate agent should be prepared to call their client (Seller or Buyer or both), depending on who is paying. The title company then either needs to have the party provide a credit card for this payment or provide a check (some may only accept checks) up front, depending on what is required by the management company.
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In the current contract, CIC documents are called “Association Documents”. The Seller is required to provide these documents to the Buyer, per the contract, and it is the Seller’s responsibility to be certain they are providing all of the information required, and the most updated information.
The CIC documents should be ordered as soon as possible after the contract is executed, in order to meet the deadline specified in the contract. They provide the Buyer with the financial status of the HOA, meeting minutes, declarations, by-laws, rules and regulations, etc., from the homeowner’s association. Some associations will provide these free of charge to the Seller directly; while other HOAs will charge for them.
The CIC/Association Documents also include the CCR’s which are disclosed on the Exceptions page of the title commitment. Land Title automatically includes a copy of the CCRS with the commitment, either as a link on the electronic version of the commitment, or as a paper copy sent out with the first commitment.