HOA Disclosures – CAR Sponsored Law
This new law holds down the costs that an HOA may charge a seller for the HOA documents by requiring a clear statement on the billing form (C.A.R. Form HOA2) that the seller is not required to purchase all of the listed documents, but may provide the buyer, at no cost, current copies of any of the disclosures that the seller already has in their possession. Moreover, the annual budget report must individually identify the cost of each separate disclosure document on the billing form thereby giving advance notice of and transparency to these fees.
HOA managers must disclose to the HOA whether they receive a referral fee or other benefit from a third party who provides disclosure documents, and must provide a written acknowledgement that the disclosure documents are the property of the association and not those of the manager or the manager's firm. Effective January 1, 2017.