Open Forum

A couple of questions
1) How often is HOA information and/ or HOA docs required as part of the title and closing process?

2) In those instance, what solutions have people used - 

a) InspectHOA
b) Sperlonga
c) Black Knight
d) CoreLogic
e) First American
f) Manual follow up with the HOA
g) Something else

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Prashant Kothari
Managing Director
Falls Church VA
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Hi Prashant,

HOA documents are required for every purchase where an HOA is present. Unfortunately, sometimes an HOA is missed, which can lead to significant costs. There are around 400,000 HOAs in the country, and 3 out of 4 new constructions are within an HOA. Sometimes HOAs are 90% of your market, other times - 10%. On average, around 50%+ of transactions involve an HOA.

I won't comment on the solution - I am biased :) 

Happy to chat more!

Best,
Anton

------------------------------
Anton Tonev
InspectHOA
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Original Message:
Sent: 04-04-2023 11:27
From: Prashant Kothari
Subject: HOA information

A couple of questions
1) How often is HOA information and/ or HOA docs required as part of the title and closing process?

2) In those instance, what solutions have people used - 

a) InspectHOA
b) Sperlonga
c) Black Knight
d) CoreLogic
e) First American
f) Manual follow up with the HOA
g) Something else

------------------------------
Prashant Kothari
Managing Director
Falls Church VA
------------------------------

In New York, a Declaration of Condo is Filed vs all the Lots in the Subdivision. the problem is that the custom and practice is that the owner receives at closing a copy of the Declaration and is supposed to keep in a safe place and pass it on to the New Owner when the Unit is Sold, and of course no one ever does. the Seller usually doesn't know what you are talking about when asked.

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Sal Turano
President
Abstracts, Incorporated
Garden City NY
+1 (516) 683-1000
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Original Message:
Sent: 04-06-2023 13:31
From: Anton Tonev
Subject: HOA information

Hi Prashant,

HOA documents are required for every purchase where an HOA is present. Unfortunately, sometimes an HOA is missed, which can lead to significant costs. There are around 400,000 HOAs in the country, and 3 out of 4 new constructions are within an HOA. Sometimes HOAs are 90% of your market, other times - 10%. On average, around 50%+ of transactions involve an HOA.

I won't comment on the solution - I am biased :) 

Happy to chat more!

Best,
Anton

------------------------------
Anton Tonev
InspectHOA

Original Message:
Sent: 04-04-2023 11:27
From: Prashant Kothari
Subject: HOA information

A couple of questions
1) How often is HOA information and/ or HOA docs required as part of the title and closing process?

2) In those instance, what solutions have people used - 

a) InspectHOA
b) Sperlonga
c) Black Knight
d) CoreLogic
e) First American
f) Manual follow up with the HOA
g) Something else

------------------------------
Prashant Kothari
Managing Director
Falls Church VA
------------------------------

Prashant:

I'm not sure I understand your question completely. From a purely "title" point of view, the title search should include the documents which are of record (typically, the declaration or recorded covenants). This puts the buyer on notice that the property is burdened with some form of association governance -- condominium, cooperative or home owners association (aka planned community in some states).

The amount of involvement you as a title agent have with the association is more a matter of state law and custom. Most state statutes I know of put the burden on the SELLER to obtain association documents for the buyer and to go through the process of paying certain fees and having association approvals for the sale (if there is a right of first refusal or approval of buyers, or otherwise.  In some places, the title agent acts on behalf of the seller and the association, and collects signed document, receipts and fees.

At least here in SE Pennsylvania, the method of interaction with the association is a case by case issue. If the association or manager has an automated system to obtain documents, that is what you use. If the manager reviews their files and inspects the property before conveyance, that is their choice. Thus, I don't see that the title agent selects an "HOA solution." 

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Marshal Granor Esq.
President
Attorneys' & Brokers' Abstract Company
Horsham PA
+1 (215) 830-1100
------------------------------

Original Message:
Sent: 04-04-2023 11:27
From: Prashant Kothari
Subject: HOA information

A couple of questions
1) How often is HOA information and/ or HOA docs required as part of the title and closing process?

2) In those instance, what solutions have people used - 

a) InspectHOA
b) Sperlonga
c) Black Knight
d) CoreLogic
e) First American
f) Manual follow up with the HOA
g) Something else

------------------------------
Prashant Kothari
Managing Director
Falls Church VA
------------------------------

The answer to your question may depend on the state.  In NC and SC the Declaration establishing the HOA is recorded in the Register of Deeds office.  Therefore, it is found in the title search.  The HOA doesn't exist until that document is properly agreed to by the appropriate parties and recorded to put all owners within a subdivision on notice.  The closing agent is required to obtain an estoppel from the HOA showing any amounts due at the time of closing as those amounts can become liens on the property.  Any amounts due are paid to the HOA at closing.  We are contacting the HOA directly. 

------------------------------
Lora Leathco
Paralegal
Capital City Title Agency, Inc.
Columbia SC
+1 (803) 277-4322
------------------------------

Original Message:
Sent: 04-04-2023 11:27
From: Prashant Kothari
Subject: HOA information

A couple of questions
1) How often is HOA information and/ or HOA docs required as part of the title and closing process?

2) In those instance, what solutions have people used - 

a) InspectHOA
b) Sperlonga
c) Black Knight
d) CoreLogic
e) First American
f) Manual follow up with the HOA
g) Something else

------------------------------
Prashant Kothari
Managing Director
Falls Church VA
------------------------------

Good Morning Prashant, 

Many title companies do utilize an HOA solution service to help streamline their efficiency and allow their employees to focus on more critical tasks. HOAs are a big pain point for many title companies as you know, collecting the needed information for HOAs can be a headache. Especially since many HOAs change managers each year, homes are in multiple HOAs, and many HOA's are self-managed by the BOD.   

 

It's nearly impossible to stay current on all the changes, not to mention having to cover the upfront costs of those document fees. 

 

Association Online steps in to help our industry partners by delivering HOA documents on time, verified for accuracy, and we can carry the cost to closing. Our solutions save time and transfers the HOA risk away from the title company. The average title company we work with has been able to cut their HOA expenses by 40%, while at the same realizing a significant reduction in the time your staff spends on HOA issues.  Those significant savings enable a level of flexibility that is critical in today's economic climate. We help reduce expenses, increase timeliness, and guarantee the documents we deliver meet each state's requirements.  

 

I'd be happy to chat more about the solutions Association Online offers.  

All the best! 

Shawnna 

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Shawnna Schmitz
Business Development Manager
Association Online
Russell KS
+1 (970) 530-3889
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Original Message:
Sent: 04-04-2023 11:27
From: Prashant Kothari
Subject: HOA information

A couple of questions
1) How often is HOA information and/ or HOA docs required as part of the title and closing process?

2) In those instance, what solutions have people used - 

a) InspectHOA
b) Sperlonga
c) Black Knight
d) CoreLogic
e) First American
f) Manual follow up with the HOA
g) Something else

------------------------------
Prashant Kothari
Managing Director
Falls Church VA
------------------------------