Realtors: Are they protecting buyers or the HOA?
Excerpt from L.A. Times column, Associations, May 21, 2006, with permission of the author Donie Vanitzian, relating to the sale of an HOA property. A writer asks:
Finally, I supplied an interested buyer with the association's pro forma budget and some other papers the management company gave me. The buyer was unimpressed and refused to sign the offer to purchase without writing contingencies into the contract.
The buyer reserved the right to renege on the sale without penalties or forfeiture if the following contingencies were not met:
• The buyer's acceptance of all of the association's governing documents with copies of every amendment, rewrite and restatement.
• A forensic audit conducted by the buyer's attorney or accountant of the association's books, records and banking, at the buyer's expense.
• An independent investigation of the association's management company and personnel directly responsible for managing said association.
• A minimum of three years of final — not draft — board meeting minutes.
• Copies of all correspondence from seller to the board and from board to seller.
Here's my problem: I'm moving because our association has a history of tyrannical boards and overspending without accountability. If the buyer learns of this, there goes the sale. Do I have to accept all these contingencies?
Finally, I supplied an interested buyer with the association's pro forma budget and some other papers the management company gave me. The buyer was unimpressed and refused to sign the offer to purchase without writing contingencies into the contract.
The buyer reserved the right to renege on the sale without penalties or forfeiture if the following contingencies were not met:
• The buyer's acceptance of all of the association's governing documents with copies of every amendment, rewrite and restatement.
• A forensic audit conducted by the buyer's attorney or accountant of the association's books, records and banking, at the buyer's expense.
• An independent investigation of the association's management company and personnel directly responsible for managing said association.
• A minimum of three years of final — not draft — board meeting minutes.
• Copies of all correspondence from seller to the board and from board to seller.
Here's my problem: I'm moving because our association has a history of tyrannical boards and overspending without accountability. If the buyer learns of this, there goes the sale. Do I have to accept all these contingencies?
posted by Citizens for Constitutional Local Government | 2:36 PM
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