As we all know the State has passed Legislation that is re-shaping the way that Condos and HOA's are governed. In addition the State has listened and learned from the market, and they have introduced legislation to address some of the issues created by the required SIRS/MILESTONE/TURNOVER inspections.
Without getting into too much detail. HOA's, CONDO Boards, and CAMs now have more fiduciary duties to the residents that they preside over. They carry much of the burden with facilitating required inspections, recording keeping, and overall disclosures for their respective communities.
Communities can now fund required repairs with loans and other financial instruments. This should ease the financial burden created by necessary repairs and reserve requirements. The time periods for many of these inspections have been increased as well.
The good news is that as Realtors...we don't need to concern ourselves that much with understanding each and every detail for the buildings we may find ourselves selling.This has fallen onto the shoulders of the buildings HOA/Condo Boards or CAM's. Gone are the days when Property Managers could "half-ass" everything and tell agents or owners to go on Public Records to find necessary Condo Documents. The burden of gathering necessary Condo documents and Disclosures is contractually on the Seller...who will be able to get them from their Boards or property managers who are now held to a different standard.
It's about time if you ask me. Half the battle of selling condos has always been about gathering the "Condo Docs"...
I have included Redlined Versions of the New NABOR and Fr-BAR documents as well as a chart that compares similarities and differences of each.
THIS IS NOT GOSPEL!!! WWMR (Josh Rudnick) will be preparing a Zoom meeting covering these new rules at the end of July. What I have given you is a rough draft and pretty basic...but it does the trick until we hear from our Attorneys. The new forms are coming out July 1st.
Stay Tuned and Happy Selling!!
