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A Guide for Moving Out of Your HOA

Moving is always stressful but it can be more complicated if you are in an HOA, check your CCR and ask you Community Manager for more information.
Kimberly Sutherland | Mar 18, 2024 | 3 min read

You are considering the move from your home or condominium. You have begun to make a mental map of all of the processes and steps that you will need to take care of. The reality is moving is a daunting and stressful endeavor and it is easy to overlook or forget everything that needs to be done beforehand. When your home is part of a homeowners association there may be additional obstacles to navigate than you may have foreseen.

What Do I Need to Do to Move Out of My HOA?

Many homeowners' may not realize that you cannot just pick up and move out of a property that is part of a homeowners association. In order to reduce frustration and not get caught off guard make sure you prepare and research what will be required before you even begin the selling process. As soon as you are considering moving out of the home, your first step must be to read up on your HOA's bylaws in addition to its CC&Rs. These documents will delineate the HOA's policies governing the process of moving out. It would also be in your best interest to consult a real estate attorney to check for state laws for any additional requirements to move out.

Notify Your HOA

Once you have decided you will be moving but before you place your home for sale; contact your HOA directly and let them know you are beginning the process of selling your home. Oftentimes, community managers can offer you guidance or assistance with some of the requirements and procedures of the HOA for the selling of your home.

Check your HOA Account

A wise thing to do before setting your home up for sale is making absolutely sure your HOA account is current and in good standing with all membership fees and fines paid up to date.

Be Prepared for Potential Fees

Homeowners may not be aware that most homeowners associations charge a fee to transfer membership in the homeowners association to the new owner. The amount of this fee is wholly up to each HOA, some charge flat fees while others charge a percentage based on the amount your home is sold for. It is crucial to research and plan for this additional cost so that it is accounted for in the sales contract for your home.

Required Home Inspection

In addition to transfer fees homeowners associations also often require a home inspection report to be completed before the sale of the home. This is an inspection to be conducted by the HOA often done by their ARC to make sure the home is in compliance with the community's CC&Rs. If the home does not pass the inspection then all issues will need to addressed and rectified in order to receive the report.

Notify Potential Buyers of the HOA

It is crucial that you as a seller of the home disclose to all potential buyers that the home is part of an HOA. Buyers may also inquire into the monthly dues required, governing documents of the HOA, and your property's status regarding any possible liens or fees owed to your HOA. This is also why it is important to keep your HOA account in good standing. Any discovered past due balances or issues pending with the HOA may deter potential buyers from purchasing your home.

Required HOA Documents at Closing

In addition to your completed home report, and HOA transfer documents, you will likely also have to provide the new buyer a home resale package. This resale package often includes all of the information regarding the HOA to put the new owner on notice. This includes HOA bylaws, CC&Rs, as well as information regarding monthly dues.

Moving out of a home that is part of a homeowners association may require some additional work on your part. However, taking the extra time to research and prepare for the process beforehand will ensure that the sale of your home goes as smoothly as possible.

Rules and Regulations Download - CTA

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