Bakersfield, CA asked in Real Estate Law for California

Q: California Code which requires seller of residential property to disclose to buyer that the property is within an HOA.

If a seller is selling a property which is within a Homeowners Association (HOA), what is the California code which requires seller to inform buyer of HOA plus details of HOA. I believe that the law is in the civil code.

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2 Lawyer Answers
James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Sacramento, CA
  • Licensed in California

A: Under California law, the requirement for a seller to disclose to a buyer that a residential property is within a Homeowners Association (HOA) is detailed in the California Civil Code. Specifically, Section 4525 of the California Civil Code outlines the documents that a seller must provide to a prospective buyer when the property is part of an HOA.

These documents include the governing documents of the association, any financial statements, and notices related to assessments or fees. It's crucial for sellers to comply with these disclosure requirements, as they provide the buyer with essential information about the HOA's rules, regulations, and financial health.

Failure to provide these disclosures can lead to legal consequences for the seller. It's advisable for both buyers and sellers to be well-informed about these obligations to ensure a transparent and fair property transaction. If you're involved in such a transaction, consulting with a legal professional familiar with real estate law can provide valuable guidance and ensure compliance with all relevant legal requirements.

Yelena Gurevich
Yelena Gurevich
  • Studio City, CA
  • Licensed in California

A: Civil Code Section 4525 requires an owner of a property within an association to provide various items of information and documents to a prospective purchaser of the owner's property “as soon as practicable before the transfer of title or the execution of a real property sales contract.” (Civ. Code § 4525(a).)

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