A Story by Michele Kreinheder | Updated 08/17/2014 10:46pm
Open in Gallery
When purchasing a condo, townhouse or any unit in a CID (Common Interest Development) the legal contract states the seller must within 3 days request from the HOA (Home Owners Association) any documents ârequired by lawâ.Â That law is located in the California Civil Code which contains the Davis-Sterling Act and that act requires 27 disclosures. Not surprisingly HOAs generally fail to provide all 27.Â And even if they are provided, they are complex articles that would best be reviewed by a lawyer, CPA or insurance specialist.Â
Here is a short list of disclosures: Articles of Incorporation, Bylaws, CC&Rs (Covenants, Conditions, and Restrictions), Rule and Regulations, Financial Statements, Insurance policy, Board minutes from the last 12-months, disclosure of any anticipated litigation by or against HOA, and statement showing location and number of designated parking and storage spaces.
I donât mean to scare you off from purchasing a condo or townhouse but you do need to enter into the purchase with your eyes wide open.Â I would suggest you take a good chunk of time to study the disclosures and then seek professional advice if you find anything that makes you uneasy. There are inherent risks on purchasing anything, but be the smart buyer; read, study, ask the âstupidâ questions, get referred to a good insurance agent, and ask your Real Estate Agent for advice.
Long Beach is full of CIDs in a wide range of sizes and styles. They are what make Long Beach interesting and affordable.Â So if your lifestyle is leading you down the path of condo ownership, I congratulate you, but do remember the phrase âbuyer bewareâ and invest both time and money doing your investigations.