Condominium Owners Have Unique Obligations Single Family Home Owners Do Not
In San Mateo condominium transactions, a buyer is entitled to receive any and all information that materially affects the enjoyment and livability of the property. Owners in condominium community associations have unique obligations that single family home owners do not. As such, owners selling their condominium units incur substantial financial liability should they fail to disclose issues that affect the value or desirability of the property – particularly those pertaining to the Homeowner’s Association (HOA).
Sellers Must Obtain and Delivery Specific Documentation Prepared by the HOA
In addition to the mandated Seller Transfer Disclosure Statement, it is the seller’s responsibility to obtain and deliver to the buyer specific documentation and information prepared by the Homeowner’s Association (HOA). A document called a “Request for HOA Documentation” identifies the information and documentation required by law. Typically, the HOA has ten days from the date of the seller’s request for information to provide such documentation.
What the HOA Must Provide to its Member Owners under Civil Code Section 1368
Civil Code Section 1368 requires HOA’s to provide the following information to member owners.
- A copy of the governing documents including Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restrictions, Rules and written policies.
- A statement of age restrictive covenants, if any can only be enforced in accordance with the Unruh Civil Rights Act.
- A copy of all documents distributed pursuant to Civil Code 1365 which includes the pro forma budget and reserve study information and summary, a review of the financial statement, the statement describing the association’s assessment policies, and a summary of certain of the association’s insurance policies.
- A statement indicating the current amount of the association’s regular and special assessments.
- A statement disclosing the assessments owed by the seller and any changes in the association’s current regular and special assessments that have been approved by the board, but are not yet due and payable; Special information relating to construction defects or to the association’s repair plan for such defects, where this information has been distributed to its members.
- The status of litigation which could impact the property.
- Any violation of architectural guidelines that could impact the purchase property.
- A copy of the recent year’s approved meeting minutes.
- Copies of the most recent year’s association newsletters.
California Law Requires the Above Info Be Provided to Owners, Not Buyers
Under California law, the association is required only to provide certain specific information and only to certain people, namely the owner of the unit. It is, then, the seller’s obligation to make a full and proper disclosure of this information to the buyer.
What Happens if Sellers Don’t Disclose Material Facts?
Failure to advise a buyer of material facts that creates a significant or unnecessary hardship on the buyer can create potential liability for the Seller, Board, Homeowner’s Association, Property Manager and Real Estate Agent.
Buyers Should Be Aware of these Obligations when it is Time to Sell their Condo
A buyer’s understanding of the real estate law pertaining to these issues is not vital, however understanding the impact of the resale disclosure information provided in the HOA documentation is critical.
Don’t Understand the Document? Consider Hiring an HOA Specialist
San Mateo real estate agents are neither licensed nor qualified to interpret the legal affect of the governing documents and the HOA’s financial position. For this reason, we recommend that a buyer retain a homeowner’s association documentation review expert to examine and evaluate the financial health of the HOA.
Rules Listed in the HOA Documentation are Required to Be Upheld by Law
The law requires directors to enforce their governing documents, including the maintenance and “use” restrictions related to pets, parking, occupancy, rentals and other applicable restrictions and obligations. There is enhanced value created in a well-managed, well-maintained, financially healthy community, where the membership embraces the rules. Abiding by the rules and restrictions will greatly influence how well you’ll enjoy condominium living and how marketable your unit is when the time comes to sell it.
What Have San Mateo Condos Near Yours Sold for?
Click on the “Your Home’s Value” button to have a detailed market report sent to you, including what condominiums near you have sold for in the last 90 days. This will help give you a good idea what other buyers were willing to pay for units in your area. View a sample market report before you sign up.
Need to Sell Your San Mateo Condominium?
Check out our Seller Representation page to learn how we help you sell your San Mateo condo in the fastest time and for top dollar. Then, call us at (650) 655-2500 or email us at info@LivingWellinSanMateo.com to schedule a no obligation consultation.
Considering Buying a San Mateo Condo?
We teach several home buyer education programs to help educate, inform and empower San Mateo home buyers. For a class schedule, check out our San Mateo Home Buyer Education Class Schedule page.
You can also check out our Buyer Representation page to learn how our buyer representation program is All About You! Then call us at (650) 655-2500 or email us at info@LivingWellinSanMateo.com to schedule a no obligation consultation. We’ll help you come up with a strategy to buy right.
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Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.
Raymond Stoklosa, Broker/Co-Owner
Chela Stoklosa, Realtor/Co-Owner
