Agents,
Gathering the required HOA documents
The REPC is very clear. When a home is part of a homeowners association that the CC&R’s, the most recent minutes, the budget, and the financial statement must also be delivered prior to the Seller Disclosure deadline.
Per the REPC section 7: SELLER DISCLOSURES. No later than the Seller Disclosure Deadline referenced in Section 24(a), Seller shall provide to Buyer the following documents in hard copy or electronic format which are collectively referred to as the “Seller Disclosures”: (d) a copy of any restrictive covenants (CC&R’s), rules and regulations affecting the Property; (e) a copy of the most recent minutes, budget and financial statement for the homeowners’ association, if any
So what’s the best practice when listing a home that’s part of an HOA?
1. Take the “Request to Homeowner/Community Association for Documentation” form to the listing appointment. (see the attached PDF which is also on the MLS)
2. Have the Seller fill out the form while completing the listing paperwork.
3. Scan in a copy of the form and send it to the client.
4. Have the client email the Homeowners Association the document and have them Cc you on the email.
PLEASE DON’T WAIT UNTIL YOU HAVE A SIGNED REPC TO REQUEST A COPY OF THE HOA DOCUMENTS. This should be done before a listing is on the market.
Rich’s step-by-step plan.
It’s somewhat tricky taking a listing and being compliant with all the rules from the state, board, MLS, and brokerage. I thought it would also be beneficial for you to know what I do from initial listing paperwork until the sign is posted. Here’s what I do:
Here’s a list of all the documents I get signed when taking a listing while at the home:
1. Exclusive Right to Sell Listing Agreement & Agency Disclosure (ERS)
2. Wire Fraud Alert Disclosure (per section 11 of the ERS)
3. The MLS Data Input Form (per section 11 of the ERS)
4. MLS Listing Exclusion Form
5. Request to Homeowner/Community Association for Documentation (if the home is part of an HOA)
Here’s what I do the day after taking the listing:
6. Send out a digital version of the Seller Property Condition Disclosure to have the Seller complete (per section 11 of the ERS).
7. Email the MLS Listing Exclusion Form to UtahRealEstate.com. Make sure you do this within 5 business days of taking the listing to prevent a $250 MLS fine. Another option is to publish the listing without photos and immediately change the status to “Off Market.”
8. Order the Commitment for Title from your title company.
9. Order the Home Warranty Listing Coverage if your client has agreed to it. (If they don’t agree to this you are probably explaining it incorrectly to them).
10. Order your professional photographs.
11. Ensure that the HOA Document request was emailed. (if the home is part of an HOA)
12. Get the Lead Based Paint Disclosure signed if the home is older than 1978. I send this to them digitally.
Here’s what I’ll do prior to posting a listing “Active” on the MLS
13. Review the Commitment for Title to ensure you have all the required seller’s signatures. If you don’t know what signatures are required then please ask me or the title company.
14. Load all of the seller disclosures in the documents section of the MLS listing.
PLEASE REMEMBER. THERE IS NO ADVERTISING OF THE LISTING UNTIL IT’S “ACTIVE” ON THE MLS! THIS IS A $500 FINE BY THE MLS.
Here’s what I do after the listing is live
15. Install the sign & keybox. Personally I like my listings to go live on a Wednesday afternoon/evening.
16. Facebook, KSL, Instagram and any other marketing
You don’t necessarily need to follow this step-by-step format. If you have a more efficient way please let me know. I’m always interested in the most efficient ways of doing business.
I hope you are all doing well.
Thanks,
Rich