FAQ

Can I print the Report?

The REPORT is a PDF document that can be printed on any printer.

Can I print the Dossier?

The DOSSIER is a PDF document that can be printed on any printer.

Can I use the report for another unit in the same project/complex?

No for several reasons, including time, the difference in ownership, and more.

My transaction fell through. I am now under contract for a different unit in the same project/complex with the same association. Can I use the Report and Dossier I paid for the first attempt?

No for several reasons, including the difference in ownership.

What are the most important issues when buying in a CID?

Many of us would qualify the financials and governing documents as critical.
As a new owner, I would like to know about the money (financial), the rules (governing documents) I need to follow and if I inherit some unsolved issues (clearance) for which I may become financially responsible.
However, everyone has his own set of priorities. For some, the financials may be secondary because they want the property for the school (for example), no matter what. Some others may not buy as long as there is litigation (which can happen the day after they close!). Getting the board of director meeting minutes may help uncover issues that may reveal critical for some individuals (for example change in the ability to lease the property - vital to an investor). We all can argue and have an opinion about the importance of each item.
These are the reasons the client is encouraged to learn (before investing) what is disclosed (our review) in meaningful terms (hopefully - let us know) to make an educated decision adhering to their own set of priorities.

Are the disclosures usually complete, and if not, why?

We seldom get a complete disclosure from a seller/association. Among other multiples reasons, the law is changing, and new requirements are added every year. Most of the associations have difficulties of being entirely compliant (even the ones that are managed!). We often obtain statements from associations explaining why an item or document is missing. In Disclosure Line opinion, it’s essential to get a statement from the association explaining the reason(s) a document or information is not available. Let’s remind ourselves that an association will (most likely) not create (and disclose) a document that does not exist.

As a seller, what are the risks of not preparing a complete and thorough disclosure?

First, it’s the law! It’s the seller’s responsibility to prepare and disclose information following the Civil Code article 4525.

I have several documents (for example, the CC&Rs, bylaws, Articles of Incorporation, and most recent budget), why would I order all the disclosure documents from the association?

This is the reason (by law) the association has to offer an itemized disclosure package. The owner is therefore able to pick and choose what to order from the association.

Disclosure Line recommendation is to order the whole package. Any owner may believe to be in possession of the latest financial statement while, in facts this is the last one you have received and the new one is now (over)due. This happens for many documents including CC&Rs (restatements and amendments), Bylaws, articles of incorporation and so many more. Ordering the entire set will enable us to get an answer from the association for every missing piece. Remember that neither you nor the association will create a document for that transaction even if that document is now overdue. You’d rather have the association giving an explanation. Think of doing your duty as spelled in the law.

What are the risk of not reading the disclosure package made available by the seller?

Remember that: “If only I knew, I would not have...” We all understand how unfriendly, boring and tedious it can be to read all the pages disclosed by the seller. Furthermore, one can wonder: am I reading the most recent set of disclosures?” Is there anything missing (new budget, new CC&Rs or CC&Rs on the verge of being recorded, perhaps before close of escrow...)? Do I fully understand the intricacies of each document? Finally, proving that you have read the full disclosure can only help your situation if something happens. This is your risk management tool that can constitute some sort of insurance for the future.

Who pays for the Review (Report and Dossier)?

The party who order is interested to acquire knowledge regarding that transaction and pay for that knowledge. The only law is that the seller and the seller only is required to pay for the disclosure package to produce to any prospective buyer.

The association does not want to answer my questions. Is this normal?

The association, either directly or through the association management company will exclusively answer to their members. As a buyer, you are not a member until you close escrow. Although many associations may answer to you or your agent directly, expect to have them decline as would any corporate individual. Redirect your questions to the seller who, in turn, can send your questions to the association.

Have a question we didn’t address here? Get in touch and we’ll respond shortly!