Monday Market Myth: HOA Docs for a Condo

Myth: A buyer is required to pay for the Homeowners Association documents for the property they are trying to purchase no matter the fee.

False: Governor Jerry Brown recently signed the Assembly Bill 771 that prohibits Homeowner Associations from charging buyers a large expense or profit for producing homeowner documents, restrictions of the property, details on the unit structure, and more. Some associations were charging buyers up to $1000 for the documents, when it only cost HOAs about $75-250 to generate this information.  The buyers were not refunded these fees if the transaction feel through, and this would be a financial burden to money tight first time home buyers or 100% financed loans.

The new law also states which documents need to provided, and  the third party who prepares the documents are also held by these standards.  Buyers are now protected by the bill and will be able to move into a home without paying for unnecessary fees.

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