HOA Disclosure
Definition
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
Example
A buyer purchases a condominium and receives the HOA disclosure package showing monthly dues of $400, a recent special assessment of $5,000 per unit for roof replacement, and pending litigation against the association. The buyer has 5 days to review and can cancel the purchase if dissatisfied.
Exam Tip
HOA disclosures must include financial statements, CC&Rs, meeting minutes, and pending assessments or litigation. Buyers typically have a review period during which they can cancel. The exam may test what happens if HOA disclosures are not provided—the buyer typically has the right to rescind.
Related Disclosures Terms
Scope of Fair Housing Laws
Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.
Protected Classes
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
Consequences of Fair Housing Violations
Violating fair housing laws can lead to significant penalties, including fines, civil liability, and professional discipline.
State and Local Fair Housing Laws
Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.
Lead-Based Paint Disclosure
The Lead-Based Paint Disclosure is a federally mandated disclosure required for all residential properties built before 1978. Sellers and landlords must disclose known lead-based paint hazards and provide the EPA pamphlet "Protect Your Family From Lead in Your Home."
Property Condition Disclosure
A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
Frequently Asked Questions
Test Your Disclosures Knowledge
Practice with exam-style questions to make sure you can apply HOA Disclosure and other disclosures concepts.