hoa from a buyer's point of view

HOME OWNER’S ASSOCIATIONS

From a Buyer’s Point of View

HAPPY BUYER = RETURN BUSINESS

• We all want to feel good about what we do. The best way to do it is by providing excellent customer service for a happy client, a happy life and for more business.

• New buyers need special attention and extra guidance.• That’s why educating them as to the purchasing process and how to

make a home purchase that’s right for them is key.• This seminar will help you help your clients with their education.

PURPOSE OF HOA• A Homeowner’s Association is an organization or property

owners elected by home owners or board appointed directors to administer the bylaws of the community.

• The administration of these rules affect what you can and cannot due with your property in the interest of protecting the value and security of the neighborhood.

FLORIDA STATUTE• Fla. Stat. 720 governs Home Owner’s Associations.• http://

www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0720/0720.html

• This statute governs the authority of the HOA and provides them with certain powers.

• It’s important to know when your HOA bylaws were last changed.

• http://www.clickorlando.com/news/new-florida-law-cracks-down-on-hoa-dictatorships/20741628

• http://www.hoareformbill.net/index2013.html

PROTECT YOUR BUYER, PROVIDE BYLAWS IN ADVANCE• Bylaws can be located in public records.

• https://officialrecords.broward.org/oncoreV2/Search.aspx• http://oris.co.palm-beach.fl.us/or_web1/or_sch_1.asp• BUT, seek advice from counsel for clarification of the laws.

PROTECT YOUR BUYER, IS THE HOA FINANCIALLY SECURE?

• Obtain a copy of the financial records.• Talk to the residents.

THINGS TO LOOK FOR IN THE BYLAWS

• Are there restrictions on vehicles that can be parked in the driveway?• Are there restrictions on the external landscaping, construction or

decorations?• Is it a gated community?• Does it allow school buses inside the gate?• Does it limit or control renting?• Is there a Master and a Sub?• Where, when and how can you pay your dues?

IS THE HOA PROPERLY MANAGED

• The last thing you want is for a buyer to move into a house that is at risk for sudden HOA rate increases.

TALK TO THE RESIDENTS• Selling a property requires more than knowing the neighborhood statistics.

You also need to know if the HOA stands up to the hype.• Get to know residents through:

• Community events.• Phone polls• Prior sales relationships

• Ask the residents questions:• Have you had frequent board member turnover?• Are the rules/promises being honored?• General Complaints?• Financial concerns?

ENCOURAGE CLIENTS TO BE NEIGHBORLY

• After buying, the new home owners should develop friends with neighbors to reduce complaints and to build protections.• I.e. condo commandos.• I.e. soldiers in arms against abuses of power.

AFTER PURCHASE, STAY INVOLVED

• Encourage buyers to stay involved in the HOA doings.• Buyers should attend meetings to stay in the know. And,

they should especially attend annual meeting for new board elections.

• http://www.ccfj.net/

ASK BEFORE YOU ACT• Before changing anything to the exterior of the home,

encourage your buyer to ask before they act.• Ask the HOA• Ask the City

• This Saves:• Money,• Time and• Aggravation!

FINES• HOA’s may have the power to fine for violations of the

bylaws.• Your options include:

• Pay the fine immediately to prevent more costs and expense.• Ask for a variance/exemption to the rules, during which if you’re

denied you could incur more fees/costs/fines.• Litigate, which involves even greater financial risks.

FORECLOSURE• HOA’s have the power to foreclose• They typically foreclose faster than a lender.• Same process.• Pay dues monthly and if a check is returned or the

recipient of the dues is called into question, contact the board immediately for an answer in writing.

• Interest, attorneys fees and costs accumulate fast!

BANKRUPTCY• Bankruptcy CANNOT wipe out an HOA liens through

Chapter 7.• BUT, Chapter 13 Bankruptcy may facilitate working out a

payment plan for arrears while paying current monthly/quarterly dues.

UNLAWFUL PRACTICE OF LAW

• DON’T GIVE LEGAL ADVICE!• You want to help your potential client, but protect yourself

always.• Get it in writing.• Don’t help with filing Bankruptcies!• Don’t help with filing Motions!• Don’t go to Court!

KNOWLEDGE = POWER= SALES

• Know your area and the bylaws.• Advise buyer of rules and obligations• Encourage them to stay involved• Follow-up and make sure buyer is happy with HOA for greater knowledge for future sales.

LAW OFFICE OF PEGGY URBANEJA7401 Wiles Road, Suite 244; Coral Springs, FL 33067

(954) 840.0421; www.urbanejalaw.com

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