Real Estate & Property Law

Can Owners Have Information On Other's Loan Questionnaires in an HOA or Condo?

I have been writing alot about loan issues, FHA certifications, etc. Here is an interesting question from a frustrated owner related to financing issues. An owner attempted to sell his unit but the buyer could not get financing for purchase of the condo unit. His/her lender did not approve the loan and apparently the problem was tied to the lender's questionnaire. He knew that other units had sold and so wanted to know what lenders were approving sales and how their questionnaires differed. This left the owner in a dilemma and he came to me with this question:

"So my question is this. As a homeowner am I entitled to see the HOA certifications that the association filled out for the properties that were sold. I am hoping to find out the banks that are allowing loans so I can advise my buyers to try and get qualified for them."

My answer is this: There is no legal basis or support for this request so the HOA or condo association would probably say no. There are privacy issues involved.

But in California a member can legally ask for a membership list - names and addresses of other owners - upon stating a valid purpose. Wanting to communicate with other owners is a valid purpose. Armed with the names of owners and addresses of properties that sold recently an owner could communicate with them. However, one could also get the new owners' names by calling the local assessor's office and giving the address so why press the association for the list of all owners and take a chance on getting into a row over this.

And if contacting the new owners, tread lightly, the new owners might be turned off to a communication asking who their lender is.

Full post as published by California Condo & HOA Law on March 06, 2010 (boomark / email).