If a Chico-area home is in a homeowners association (HOA), California's Davis-Stirling Act requires the association to provide specific documents for a resale, generally within 10 calendar days of the request. Read them before you remove contingencies, because dues, rules and special assessments change what the home really costs.
What is an HOA?
A homeowners association is an organization that manages a community's common areas and enforces its rules, funded by regular assessments from owners. In California, associations in common interest developments are governed by the Davis-Stirling Act.
What documents should you get?
A summary of Civil Code section 4525 lists eleven categories, including the governing documents, rental restrictions, up to 12 months of board minutes if you request them, current assessments and unpaid fines, approved assessment changes not yet due, unresolved violation notices, construction defect information and elevated element inspection reports. The annual budget report, a reviewed financial statement when gross income is over $75,000 and the annual policy statement are also part of the package. For condominiums, an elevated element inspection is required at least every nine years.
How fast must the association deliver?
The summary says delivery is due within 10 days of the mailing or delivery of the request, counted in calendar days. The association may charge a reasonable fee based on actual cost, with no dollar cap, and must give an estimate first. If the request is canceled in writing before work begins, fees are refunded.
What should you look for?
- Monthly dues and what they cover.
- Special assessments, approved or being discussed.
- Rental restrictions, if you may rent the home.
- Reserve funding and any pending repairs.
- Rules on exterior changes, parking and pets.
- Unresolved violation notices on the property.
How does an HOA affect escrow?
HOA documents add time and cost to escrow, and your contingency period should be long enough to read them. Your lender may also have its own HOA requirements. Ask me early if a home you like has an HOA. Call or text me at 707-672-6549. Happy to help.
Frequently Asked Questions
How fast must an HOA deliver documents?
Within 10 days of the request, according to a summary of Civil Code 4530.
Can an HOA charge for the documents?
Yes, a reasonable fee based on actual cost, after giving an estimate.
What if I cancel before they start work?
Fees are refunded with no cancellation fee if you cancel in writing before work begins.
Do condos have extra requirements?
Yes. An elevated element inspection is required at least every nine years.
General information, not legal advice. This summarizes a vendor's description of the Davis-Stirling Act, so confirm the statute text and your own documents with a California real estate attorney.
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