Do I have to tell the HOA that I’m selling my condo
Here’s a question I’ve been asked from time to time: “I want to sell the condo I live in. Do I need to let the homeowners’ association know I’m selling?”
The answer: You’re not required to tell your HOA that you’re selling your condo. But it’s a good idea to speak to them before you put it on the market anyway. That’s because as part of the sale, you’ll have to provide the buyer with all types of information about the HOA, its finances, rules, regulations and history. So it’s good to be up to date on any potential HOA issues up front.
Potential HOA issues
Some HOA issues that can affect your condo’s sale include:
* The ratio of tenants to owners in the building is too high;
* The HOA isn’t well funded in case of emergency;
* Some HOA members are behind in their monthly dues;
* The HOA is in litigation with an outside party (such as a contractor or developer);
* There’s going to be an upcoming “special” assessment to replace the roof or boiler in the building.
HOA issues can affect your condo’s sales price
All these things could come into play when you try to sell your condo.
Let’s say you find out the roof and all the windows need to be replaced soon and the HOA doesn’t have enough money to do it. That’s likely to cost the new owner of your condo money. And that would have an affect on the price or negotiation.
There’s nothing worse than accepting an offer on a condo—then discovering there are problems and the buyer either wants to cancel the contract or renegotiate the price.