Who Pays for HOA/Condo Documents? | Baltimore Real Estate
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Does the Buyer or Seller Pay?
Short answer is, it depends. If the transaction is a traditional sale, in Maryland, the seller pays for the required resale package documents. The seller will contact the Home Owners Association/Condo Association and request this package, as the sellers expense. The package cost may range anywhere from $250-$500 typically. It is best to call the Association to find out the exact cost. Associations may offer the opportunity to expedite the resale package, at an additional expense. Check the contract for dates and when the resale package is due for the buyer(s) to review.
If the sale is a short sale is a foreclosure or short sale, read the terms of the contract. The banks or seller may require the buyer to pay for the package.
Can the buyer walk due to the documents??
The buyer has time to review the documents. If there is something the buyer is not comfortable living with, they have the right to cancel the contract. Be sure to review the contract for time windows. Talk to buyer and find out if there is anything that can be done to keep everything in tact. Otherwise, the home goes back on the market. The seller should keep the documents for the next buyer contract and buyers to review.
Who else needs the documents?
Generally speaking the documents are required and to be provided by the seller to the buyer. The lender may ask for information from the documents as well, for financing. The lender will send a survey to the Association. There are many reasons for the survey. The biggest reason is to ensure the Association isn't involved in litigation. Another big reason is to check delinquency ratios. If to many owner are delinquent on their dues, depending on how much, this could stop the financing process. Big reason number 3, of many more, includes owner occupant vs renter ratios. There are many more parts to the survey, but you can get a feel for what the lender is looking for. The lender wants to ensure they are putting a loan on a solid home and community. Calculated risk. I'm sure if you contact your preferred lender or ask for a recommendation from your trusted REALTOR®, more information can be provided about the survey.
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