Disclosure of an HOA Assessment

Question:  I represent a Seller.  If an HOA special assessment isn’t due until March 1st and settlement is Feb 28th, does that factor into the contract? We will disclose it however if it isn’t due until March 1 technically unless otherwise stated the buyer is on the hook for it correct?

Answer:  Look at section 4.2 of the REPC:  4.2 Special Assessments. Any assessments for capital improvements as approved by the homeowner’s association (“HOA”) (pursuant to HOA governing documents) or as assessed by a municipality or special improvement district, prior to the Settlement Deadline shall be paid for by: [ ] Seller [ ] Buyer [ ] Split Equally Between Buyer and Seller [ ] Other (explain) ________________________________________________ . The provisions of this Section 4.2 shall survive Closing.   Because this survives closing, this form gives you the opportunity to disclose the assessment and decide who is going to pay for it. This eliminates this becoming an issue after closing.