The Community Association Letter (GAR Form F322) has gone through many iterations over the years and changes to who in the transaction is responsible for procuring the letter, paying the relevant fees and what information is expected to be disclosed by the seller. Below is a breakdown of the current F322 form as it pertains to payment as of the May 1, 2022 GAR form changes.
- All fees owed to Association prior to closing to allow Seller to sell free and clear of liens (i.e., past due HOA dues)
- All costs necessary to obtain an account statement (i.e., the Closing Letter), including “all amounts required to be pre-paid” in order to obtain the Closing Letter
- Move-out fees, foreclosure fees or other fees “specifically intended” by the Association to be paid by the Seller
- Any Transfer, Initiation and Administrative Fees that are not accurately disclosed, even if later correctly disclosed by Seller. This means Sellers must due their due diligence to obtain accurate fees up front!
- All disclosed special assessments under consideration or approved before binding agreement date that are due prior to or on closing date
- All undisclosed special assessments under consideration or approved before binding agreement date.
- All special assessments under consideration or approved after binding agreement date that are due prior to or on closing date
- All Transfer, Initiation and Administrative fees accurately disclosed by Seller
- Prepaid regular assessments due at closing for a period of time after closing
- Move-in fees and security deposits for elevator reservation fees
- All disclosed special assessments under consideration or approved before binding agreement date that are due after closing
- All disclosed special assessments only under consideration after the binding agreement date that are due after the closing date (subject to buyer’s right to terminate if the assessment amount equals or exceeds the assessment amount identified in Section 4. d.)
To view the form in its entirety, click: F322 – Community Association Disclosure.
*For informational purposes only. Not to be relied upon as legal advice. Nothing in this blog should be construed as creating an attorney-client relationship. MMH is not responsible for, does not endorse or accept liability for any externally linked site or its content. MMH does not give any representation regarding the safety, reliability or accuracy of the content or materials contained on any external website.