Buying or selling a home in a homeowners association (HOA) community requires additional documentation, and missing any document can delay the process. Often called resale packages, these materials explain community rules, financial status, insurance coverage, fees associated with the property, and more so buyers and sellers have a clear understanding of what they’re signing up for.
Whether you’re closing in Orlando, Florida, Los Angeles, California, or Phoenix, Arizona, this guide will explain what documents you need, how to obtain them, who typically pays them, and what you should know before you sign.
What is an HOA resale package?
An HOA resale package is a set of required documents that a seller must provide to a buyer before closing. This discloses the community’s rules, governance, financial condition, reserves, insurance coverage, and fees associated with the property, essentially giving buyers a complete picture of what living in the community entails.
Most resale packages include two important parts.
1.Resale certificate
This homeowner-specific document confirms:
Unpaid dues, fines, and assessments Current monthly or annual HOA dues Pending special assessments Transfer, move-in/move-out, and management fees Property compliance status
2. Governing documents
These outline how HOAs work and the rules homeowners must follow.
CC&Rs (Covenants, Conditions and Restrictions) HOA Bylaws Articles of Incorporation Rules and Regulations Building Guidelines
Seller is responsible for ordering and shipping these documents. Buyers use them to evaluate community rules, financial status, and long-term obligations.
What are the key HOA documents required for closing?
To ensure a smooth closing, it is important for buyers and sellers to know which HOA documents are required and what each document reveals about the community and the property.
1. Terms, Conditions and Restrictions (CC&Rs)
CC&Rs form the basis of community rules. These outline property restrictions, homeowner responsibilities, and the HOA’s authority to enforce policies. Topics typically include:
Rental Restrictions Pet Restrictions Building Regulations Parking Regulations Noise Regulations Short Term Rental Restrictions
2. HOA meeting minutes
Meeting minutes record the HOA’s recent discussions and decisions. As we reflect on the past year, we find:
Pending projects Homeowner disputes Budget concerns Planned special assessments Lawsuits or legal issues
Buyers review meeting minutes to assess day-to-day issues and future costs. Sellers need to know about topics that may be relevant to buyers.
3. Financial statements and budgets
These documents outline how the HOA manages its funds and whether it is financially stable. The main details are:
How dues are allocated Current income and expenses Long-term maintenance plans Whether dues are likely to increase
4. Preliminary research
A preliminary study estimates how much money the HOA will need for future major repairs. Underfunded reserves can signal the following:
Future membership fee increases Possibility of special evaluation Postponement of maintenance
5. HOA Bylaws
The HOA’s leadership structure and voting procedures are established by the bylaws. Typically, the following will be covered:
Board composition Election process Voting rights Meeting rules Administrator role
6. Rules and Regulations
Rules and regulations outline the day-to-day expectations of a community. It is important that these guidelines are understood by buyers and fully disclosed by sellers. Common topics include:
Parking Rules: On-street restrictions, guest parking, assigned spaces Pet Policies: Breed/size limits, number of pets, leash requirements Property Appearance and Maintenance: Cosmetic changes, landscaping, maintenance standards Noise and Behavior: Quiet hours, activity restrictions Rental Policies: Short-term rental rules or restrictions Amenity Use: Pool, gym, clubhouse access and hours Trash, recycling and storage: Pick-up schedules, trash can storage rules Common Area Use: Aisles, common spaces, and general guidelines
7. Insurance card
The Certificate of Insurance summarizes the HOA’s basic insurance. The lender will review it to ensure that:
Type of coverage (in-wall or outdoor only) Liability limit Deductible amount
Buyers may require additional coverage depending on what is excluded in the master policy, and sellers must provide certification as part of the package.
Assessing HOA financial stability
Understanding your HOA’s financial outlook is essential for both parties. Buyers should use this information to predict future costs, and sellers should be aware of items that may come into question during escrow.
Key indicators include:
Current or upcoming special assessments Increased dues Capital projects Shortage in reserves Homeowner delinquency rates (which can affect loan approval)
Together, these factors reveal how well the HOA is managing its resources and whether homeowners may face unexpected expenses in the future.
Potential issues with HOA documents at closing
Understanding the types of HOA document issues that can arise near closing can save you time, stress, and unexpected costs. If you know what to look for, you can work with your real estate agent to address issues quickly and without any last-minute panic.
Common issues with HOA documents include:
Outdated Documents: As rules, fees, and budgets change, your HOA paperwork may not be able to keep up. Slow turnaround time: Certain HOAs take time to prepare official documents, which can delay closing. Surprising Restrictions: Buyers often discover previously unmentioned rules regarding pets, rentals, or exterior modifications. Difficult to understand language: HOA documents are thick and important details can easily be overlooked. Unannounced Appraisals: Major repairs or upcoming expenses may not be clearly disclosed, even though they will affect future costs.
Who pays for the HOA resale package and closing letter?
Responsibility for these costs varies by state, HOA, and purchase agreement. In most cases:
Resale packages and renewal fees are paid by the seller Relocation or move-in fees may be paid by either party Expedited rates apply if documents are needed immediately
Both buyers and sellers should confirm their responsibility for fees with their agent or attorney early to avoid unexpected costs during closing.
How to obtain HOA documents and order resale packages
Typically, the seller (or their agent) requests the documents, but buyers need to understand the process and timing, as delays can affect closing.
Most HOAs use one of three systems:
1. Via management company
Many communities use management companies or document portals, such as:
process:
Log in Select your resale package Pay the required fees Receive your documents within a few days (urgent options available)
2. From a self-managed HOA
Self-managed HOAs handle requests internally.
process:
Contact the board chair, treasurer, or designated representative Request a resale package and necessary certifications Allow sufficient time for manual processing
3. Through Third Party Documentation Services
Some HOAs use specialized documentation platforms that provide:
Online Order Rush Options Digital Shipping Tracking Updates
Step-by-step HOA document review checklist
Buyers can use this checklist to thoroughly review documentation, and sellers can use this checklist to ensure nothing is missing before delivering the package.
1. Check your resale certificate
Unpaid membership fees Pending special assessment Violation of rules
2. Check your budget and finances
Income and expenditure reserve levels
3. Scan HOA meeting minutes
Future projects Current conflicts
4. Check CC&Rs and Rules
Restrictions that may conflict with intended use
5. Check insurance coverage
Master Policy Coverage Additional Coverage Required
>> Read: HOA: How an HOA can be beneficial, but why it might not be right for you
FAQ: HOA Documents for Closing
1. What is a closing letter from the HOA?
A document that identifies all fees and assessments payable by the closing agent in order to settle the seller’s account.
2. What documents are required at closing?
Resale certificates, management documents, budgets and finances, insurance certificates, status/closing letters.
3. How do I obtain HOA documents?
Through your management company, an online platform like HomeWiseDocs, or directly from your HOA board.
4. What is the HOA portion of the closing statement?
Breakdown of pro-rated membership fees, transfer fees, assessed amounts, and amounts owed or refunded.
5. How long will it take to receive my HOA documents?
It usually takes 3-7 business days from the management company. It’s even longer for self-managed HOAs. Expedited options are often available.
6. What is a Closing Letter/Status Letter?
A home-specific document that identifies the seller’s outstanding balance and ensures compliance before ownership transfers.
