Own property governed by a homeowners association with a responsible Board of Directors? Make sure the Board is working on your behalf to insure that the disclosures you make about your community are accurate, up to date, and reflect the physical and fiscal condition of the development.
Whether or not sellers are required to fill out disclosure forms (this varies by state), buyers should be informed of any known material defect in a property’s condition. Sellers and sellers’ agents should be aware of and be prepared to disclose material defects in the common elements or areas of the community. If the pool by the clubhouse hasn’t been resurfaced in 20 years, a buyer has a right to know. Don’t wait for a buyer’s inspection to ruin your sale. Stay on top of the condition of your property and the development’s common elements. A good history of reserve studies helps.
Homeowner associations actively partnered with reserve study providers do their communities and residents a great service. The report is a valuable source of data for all parties to the sale, particularly buyers and sellers who would not otherwise know about or understand the condition of common area components.
When buyers are well informed, sellers are less exposed to causes of action for fraud, misrepresentation or breach of contract. Reserve Studies are an excellent way for Boards of Directors to protect individual homeowners and prospective buyers.
A professionally prepared Reserve Study promotes full disclosure and can help secure your sale! Check in and review your community’s latest report now.
