Why Do I Have To Pay For A Resale Package?
We have many homeowners who think that because they pay assessments every month they should not have to pay for a resale package. They are of the opinion that it is a bunch of pages all put together that just sits and waits for us to “push the button” when they place their order.
I would like to clarify why it is essential that management companies prepare these documents individually for each owner. First, it is a legal document required by law in many states as it protects the buyer from purchasing into a community association without first obtaining “full disclosure”. It contains a disclosure statement that includes the legal or pending legal status of litigation involving the association. It contains up-to-the-minute information about the assessments owed, outstanding special assessments and even pending assessments as required in many states. It provides the association’s financial status and any outstanding loans owed by the association. It also provides any covenants restrictions or violations on the unit. All of these questions are answered and are entered in real time by a staff member when the order is placed. The document is not static; it requires keen oversight as the questions are researched and completed.
Although homeowner associations are created as nonprofit corporations, this does not mean the associations do not engage in financial transactions or require the services of a certified public accountant (CPA). For example, it is common for an association’s governing documents to require a financial audit or review on an annual basis, and associations are required to file tax returns every year. Further examples of situations in which it may be beneficial to consult a CPA include:
One of the most challenging situations that may confront your board during a meeting is handling very disruptive audience members. For example, what if an owner with strong opinions who’s known for being very outspoken, starts yelling during the meeting? Fortunately, this kind of disruption is very rare during a well-planned, well-organized and well-run meeting. So, the key is advanced planning to handle the worst situation that may arise.
NotallHOAscanaffordto hire associationmanagers.“These arethe vast majorityof associationstoday—thosethatareself–managed,”says BillWorrall,vicepresidentof TheContinentalGroup,whichis basedinHollywood, Fla.,andmanages1,300 condominiumandhomeownerassociationstotaling310,000residentialunits.
There‟snothing wrong with being self–managed ifyouknow what you‟re doing.