Homeowner Association Document Review
A critical component of a Condominium sale or purchase, sometimes overlooked and often resulting in serious consequences for all of the parties involved in the transaction, is a professional assessment and summary report on the soundness of the fiduciary and statutory obligations and performance of the subject Homeowners Association's governing body, including the current state and soundness of the Associations reserves.
AIS Qualifications to Perform an HOA Document Review
I have handled over a half-dozen Construction/Reserve Defects litigation cases, for Bay Area HOA's ranging in size from 95 units up to 930 units. In addition to dealing with construction defect issues and the overall condition of the property and individual units, these cases required analysis of the HOA Reserves - a critical component driving the assessment costs each HOA member must pay. My analysis and review of your HOA documents identifies under-funded and/or missing reserve components, overstated useful life & remaining useful life - and makes recommendations accordingly, or, confirms that the HOA governing body has properly and adequately funded their reserves, and has complied with the requirements of the California Civil Code, Sections 1365 and 1368.
AIS Standard HOA Document Review
We begin by formally requesting all of the documents that the HOA governing body is required by law to disclose, per Section 1368. When the seller, or buyer, has already received the HOA documents 'package', we will confirm that it is, in fact, complete. In addition to determining compliance with their statutory responsibilities, as required by Section 1368, we also assess their compliance with their fiduciary responsibilities, as required by Section 1365. We require three days - from date of receipt of the requested documentation - to review and report on areas or issues of concern, to make the appropriate recommendations, and deliver your report.
Your HOA Document Review - Costs and Delivery Time
We recognize that time is of the essence, however, we cannot control when the HOA will tender the requested documents. We do issue a formal documents request to the HOA on the same business day you authorize AIS to do so, if notified before 12 noon, or the next business day, if notified after 12 noon. You are, by law, responsible for all reproduction and delivery costs incurred by the HOA in the production of the requested documents. We will review the documents, and issue our report to you, via email, within 72 hours of our receipt of ALL of the requested documents. When ordered concurrently with your AIS Premium Residential Home Inspection, we charge $650.00. We will deliver a hard copy of your report and associated documents, via USPS - within our business service area - for free. Any other delivery arrangements are optional. A minimum deposit of $250.00 is required (non-refundable) - at the time of your inspection - with balance due upon our receipt of the required documents.
Serving The Metropolitan Bay Area
San Mateo, Alameda, Contra Costa and Santa Clara Counties