Often an item that is important to assist in closing an escrow is a Homeowner’s Association (HOA) Escrow Demand. There have been questions regarding upfront fees, and whether or not a Resale Certificate is sufficient. Below are some facts concerning the HOA Escrow Demand.
– The Escrow Demand is a different document than the Resale Certificate. Most lenders have their own Lender Demand which they have to order. This is a different document.
– Unfortunately Escrow can not use the Resale Certificate, as the HOA demand contains additional information regarding fees for that specific unit.
-The Resale Certificate is ordered by the listing broker and given to the selling broker outside of escrow prior to closing. It is not a function of escrow.
– HOA’s sometimes take 7-10 days to reply to the HOA Escrow Demand. If the seller sends the paperwork in late, it can hold up closing.
– The same holds true with a rush closing. The closing date on the Purchase & Sale Agreement needs to correspond to the Demand returned from the HOA.
-There is not a list of HOA’s requiring upfront fees and those which do not, so the Demand must be done on every unit in every complex.