Tip 25-2014: Important HOA Financial Information

Tucker's Tip #6-2014 discussed the standard practice of providing the HOA Disclosure Packet to the Purchaser prior to settlement. In that Tucker's Tip, we recommended that the Disclosure Packet be provided as soon as reasonably possible after the contract is signed.

An additional HOA practice tip is to circulate the statement regarding dues and/or other charges to all necessary parties. For example, all parties need to be aware of any transfer fees or capital contribution fees. In addition, the annual, quarterly, or monthly dues need to be accurately prorated.

Accordingly, the settlement agents for both the Purchaser and the Seller (and maybe even the Purchaser's lender) should all receive the portion of the HOA Packet which contains financial information required to be prorated or charged at settlement. This practice will eliminate any surprises at the closing table.

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

 

William D. Tucker, III

Tucker Griffin Barnes P.C.

Charlottesville & Lake Monticello

434-973-7474

www.TGBLaw.com