Timely CID Disclosure and Due Diligence
Sellers provide the documents—but do not verify accuracy or explain what they mean. Without a proper review, you may not fully understand the HOA’s financial condition or legal risks. A professional review is critical to understanding the HOA’s financial health and legal status.
HOA Disclosure documents define:
- Buyer’s financial obligations
- Buyer’s rights and restrictions
Required Disclosure List:
Governing Documents
- CC&Rs (Covenants, Conditions & Restrictions)
- Bylaws
- Articles of Incorporation
- Rules & Regulations
Financial Documents
- Most recent operating budget
- Reserve study / funding disclosure summary
- Statement of outstanding assessments or fees
Assessment & Fee Information
- Regular assessment (dues) amount
- Special assessments (approved or pending)
- Late fees, interest, and collection policies
Insurance Summary
- Summary of the association’s insurance coverage
- Types of coverage (liability, property, etc.)
Legal & Compliance Disclosures
Notice of any pending litigation involving the HOA
Statement of any violations related to the property
Required statutory notices under the Davis-Stirling Act
Additional Required Items
- Most recent Annual Policy Statement
- Most recent Annual Budget Report
- Minutes of board meetings (typically last 12 months)
- Disclosure of any unpaid assessments or liens on the property.
