Union County Real Estate Talk

Charlotte NC Home Sellers Have New Homeowners Association Disclosure Requirements

Do you remember the last time you signed listing paperwork to sell your Charlotte NC home?

If it’s been a few years, you probably remember that the listing paperwork didn’t take much time.  Your agent filled in the list price and the listing time period.  You signed the listing agreement.  You filled out and signed a property condition disclosure form.  And that was about it.

Quick and easy is about to change.

Come January 1, 2011, the new North Carolina Offer to Purchase and Contract will bring radical changes in the buying and selling process for residential transactions.  The new form creates a “due diligence” contract.  This means that buyers will be given a certain period of time in which to investigate the contracted property.  During the due diligence period, the buyers may decide to proceed with the transaction or terminate the transaction for any reason or no reason.

Learn more about the new “due diligence” contract.

With buyers doing more investigation of all aspects of the property, Charlotte NC home sellers are going to be asked for more disclosure when the house is listed.  More disclosure in real estate means more listing paperwork.  More listing paperwork means sellers will need to do more homework before they sit down to sign a listing agreement with their agent.

One of the areas that will take the most time and preparation from home sellers is the new Owners’ Association Disclosure and Addendum.

If your single family neighborhood or condominium complex has a homeowners association, you will need to fill out this form.  Not only will you need to fill out the form but you will need to collect documents from your association that your buyer might request.  The following is a list of the homework that will prepare you to fill out the form.

Owners’ Association Disclosure and Addendum Homework

1. Collect basic information about the association that governs your property.  The form asks for the name of the association, the amount of the dues, and the name, address and telephone number of the association president or property manager, and the association website address.
2. Determine how many associations regulate your property.  If you live in a townhome within a single family neighborhood sharing common facilities, your property may be subject to more than one homeowners association.
3. Identify what services and amenities are paid for with dues from the homeowners association.
4. Disclose any proposed or confirmed special assessments that may affect the property.  A proposed special assessment is one that the association is formally considering but that won’t be approved prior to closing your property.  A confirmed special assessment has been approved prior to closing, whether payable at closing or not.
5. Ask your association whether there are any unsatisfied judgments or pending lawsuits involving the development or the homeowners association.
6. Identify whether there are any fees charged by the association or the management company in connection with the transfer of your property to a new owner. These fees must now be disclosed to the buyer, who is required to pay them.
7. Collect any documents and covenants and restrictions applicable to the development, such the face cover sheet of the master insurance policy, recorded covenants, rules and regulations, articles of incorporation, bylaws, current financial statements, and architectural guidelines.  It will be best to collect these documents in the form of PDF files so they can be forwarded to buyers upon their request.

Want to know more about selling your Charlotte NC home?  Request a free comparative market analysis.

Copyright 2010.  Carol Fox.  Allen Tate Realtors.  *Charlotte NC Home Sellers Have New Homeowners Association Disclosure Requirements*