QUESTIONS WHEN BUYING OR SELLING A CONDO IN SANTA MONICA and Surrounding areas

QUESTIONS TO ASK WHEN BUYING OR SELLING A CONDOMINIUM, PLANNED UNIT DEVELOPMENT OR CO-OP in Santa Monica California, West Los Angeles or Brentwood

• What is the amount of the Homeowner’s Association dues?
• Are they paid monthly, quarterly or semi-annually?
• Does the seller have the association documents as required by law? If so, deliver to escrow as soon as possible.
Required documents are:
• What is the name of the association, the name and address of the management company?
• Are there pending assessments? If so, the amount and when due?
• Are there any pending or recently settled lawsuits?
• Does the seller have copies of the most recent 12 months of HOA minutes? If not, escrow can order them from the association, per requirements of the CAR contract.
• Some lender’s will require a copy of the Fidelity Bond from the Homeowner’s Association and the percent of owner occupied units. Escrow will request this information from the management company.

Reserve study could be important to the buyer. Example: If the complex is in need of painting and there are insufficient funds in researve for painting, there will probably be an assessment shortly. Do the HOA dues include Earthquake Insurance?

** If there are any unpaid assessments, is the HOA financially sound?
1 CC&R’s
2 By Laws and Articles of Incorporation
3 Budget
4 Current Financial Statement
5 Reserve Study*
6 HOA statement showing unpaid
assessments in the complex**