Homeowner associations are not required to provide or disclose any information directly to prospective purchasers of units or lots but are required to provide a variety of documents to selling owners so that these owners can meet seller disclosure and resale certificate requirements. These include: (i) a copy of all governing documents and, if the association is not incorporated, a statement in writing that the association is not incorporated; (ii) a copy of the most recent annual budget report and annual policy statement, along with a statement of any change in the association’s current regular and special assessments and fees which have been approved by the board, but have not become due and payable; (iii) a true statement as to the amount of the association’s current regular and special assessments and fees, and any unpaid assessments or monetary fines/penalties owed by the selling owner; (iv) a copy or a summary of any notice previously sent to the selling owner alleging a violation of the governing documents; (v) a statement describing any restriction of rentals; and (vi) if requested by the prospective purchaser, a copy of the minutes of board meetings, excluding meetings held in executive session, conducted over the previous 12 months.
The seller of a unit or lot is required by law to disclose all material defects in the property, including defects located in the common area, and defects located in other units or lots if they affect the unit or lot being sold. The disclosure requirements extend to all defects of which the seller is aware or should be aware, including construction defects. Additional disclosure requirements apply when construction defect litigation has been commenced or is under consideration.
Any real estate agent involved in the sale is also required to disclose any defects of which he/she is aware or should be aware, and is further required to conduct a reasonably competent and diligent visual inspection.
Homeowner associations are not required to provide or disclose construction defect information to prospective purchasers of units or lots.