Escrow 101: Managing Homeowners’ Association Documents

Managing the Homeowners’ Association Documents

One of the first critical steps after your escrow is opened is obtaining a complete package of Homeowners’ Association (HOA) documents for the Buyer’s review.

As the Seller, you should be aware of the importance of obtaining association documents so that the Buyer’s time for review can begin. As the Buyer, your duty is to review the documents and to indicate approval or disapproval within a specified time period.

Here are some guidelines which will help both parties meet their timelines and stay on track with their escrow process.

  • The Purchase Agreement gives the Seller the responsibility of providing the documents; however it is customary for the escrow company to assist with this. San Diego Escrow Company will order the documents as an accommodation to the Seller. Advance payment is usually required, so the Seller should be prepared to make payment when the order is placed.

  • Even if the Seller thinks he has a set of the association’s documents, the Purchase Contract provides that the Seller will order a new document package from the association to be sure that it is complete and complies with current law. Some required documents, such as Minutes of recent association meetings, are not likely to be in the Seller’s possession.

  • The Seller or his agent can help the escrow officer by providing complete and accurate HOA and management company information.

  • Be mindful of the time periods expressed in the Purchase Contract for Seller’s delivery of the documents to the Buyer and for Buyer’s approval of the package after receipt. Your real estate agent can assist you with this and explain the requirements of the contract.