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Updated 4 days ago on . Most recent reply

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Pixel Rogue
  • PA
11
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115
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HOA Questions: When purchasing into an HOA, are there legal obligations to disclose..

Pixel Rogue
  • PA
Posted

When purchasing into an HOA, are there legal obligations for the HOA to disclose...
A) Number of rentals, or rental percent, in the HOA?
B) Ownership count/percentage, for example if one party owned multiple units?

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Quote from @Pixel Rogue:

State is PA.

Taking to an extreme example for illustration purposes, could someone purchase into an HOA where one owner had 60% of its units, 60% of the vote? Would the HOA not need to disclose in advance of sale?

I will echo the great advice you received from Roland - Request and review the documents.  As a general rule though, no - HOAs are not required to make specific disclosures of the type your are describing. In the majority of jurisdictions, the only responsibility a seller/HOA has before closing is to disclose that it is in existence and the filed CC&Rs.  It will be your responsibility to dig into those, and I strongly recommend doing so carefully to make sure you are fully aware of what you are diving into.  In fact, I suggest digging deeper and obtaining all policies and procedures, operating documents, recent votes, etc.  I know, it's shocking that an attorney wants to see the paperwork, but this has saved clients significantly, both in money, stress, and peace of mind in the past.  Finally, if you are purchasing property as an investment, especially if it will be a short-term rental, you will want to look at the city and county zoning, as many are tightening up the rules and regulations related to such.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.


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