HOA Documents Needed for Closing Your Home in Colorado

Selling your home is very exciting but also one of the most stressful ordeals to go through. In addition to gathering financial information, having appraisals done, packing up an entire house, and having every duck in a row by closing, there are so many documents required at closing. Is your house part of an HOA? Congratulations! You, the seller, are also required to provide the CIC Document Package before closing.

What does CIC stand for? Where did it come from?

CIC stands for Common Interest Community. It refers to HOAs, POAs, LOAs, and other communities that require you to join upon closing on your home. If the home is in multiple HOAs, the documents for each homeowner association are required. Your property may be part of a non-CIC such as a voluntary HOA or a metro district. If this is the case, you are not required to provide the HOA documents, but this information is still helpful to pass along to the buyer.

Why are CIC docs required at closing?

The CIC Document Package is required for several reasons. First, it provides protection for the buyer so they don’t move into an HOA they can’t stand. The documents help the buyer know in advance the atmosphere of the HOA, the amenities the HOA provides, how much the dues are, and how those dues are used.

Second, the HOA documents are required in order to protect the seller and HOA against legal trouble. If the buyer enters a contract and closes on the house without knowing anything about the HOA, they may be unprepared for the HOA dues and rules that are now required of them. They may seek legal assistance to charge the seller or HOA for lack of disclosure. By providing these documents to the potential owner, you can help them understand what they are committing to beforehand. CIC docs also provide a safety net for the seller to show that the purchaser was warned about potential difficulties prior to close.

What HOA documents can be withheld from the homeowner? Which documents must be made available to the homeowner?

None of the documents for the HOA can be completely withheld from the homeowner; however, the current year's Board/Executive Meeting Minutes, Reserve Study, and Financial Audit are three documents the HOA is legally allowed to put a price on, and the homeowner will have to pay in order to receive those documents. All other documents must be provided to the homeowner — or their agent — for no charge without unreasonable delay, usually within 14 calendar days.

Where can I, the homeowner, find my HOA Documents?

Contact your HOA and request the documents. If your HOA has a website or homeowner portal, they may be available for download there.

Are you having trouble finding the HOA documents?

The requirements for which documents are required at closing varies in every state. Some states may require certain documents while others do not. Despite this, it's a good idea to provide them anyway. If you aren’t the homeowner, are having trouble retrieving the HOA documents, are running into unforeseen costs and fees associated with the documents, or you are afraid of being legally liable if anything is missing, Association Online can help. We will get the documents and guarantee the package is completely based on your state’s requirements. We’ll work with you to get the documents before your closing and avoid any unnecessary fees.Contact us todayto get started.