An association estoppel is a legal document from a community association like an HOA or COA, or some other common interest community (CIC) with a break down of dues, payment schedule, special assessment levied by the association and any outstanding fees or fines.
Estoppel is a common term used in Florida. Depending on your area, you may know it as a resale package, HOA certificate, HOA demand letter, or something similar.
This is our lighter option for settlement agents who don’t have time to do the initial research and don’t want to miss any additional associations. We share contact information for the association so you can make the request.
What’s included in an Association Estoppel Report?
An association estoppel report will usually include the following:
Association dues amount and frequency of payment (ie. monthly, quarterly, annually)
All associations governing the property including the master association, sub-associations, golf clubs, or other recreational clubs
Additional membership fees or assessments for amenities
A collection payoff letter from the association’s attorney if the property has delinquent fees in collections
Upcoming special assessments and the remaining balance for the unit’s share
Buyer requirements like background checks and buyer approval applications
Confirmation specifying whether the homeowner or association is responsible for establishing and paying utility accounts
Some associations and their property management companies may provide less or more information. If you have specific requirements for your closings, please be sure to contact a business development manager to discuss report options. We can customize any report to fit your company’s needs.
WHAT’S INCLUDED IN THE HOA INFORMATION REPORT?
The Association Identification is a simple but powerful report for people looking for information on how to get started on association research.
The Association Identification includes:
The name and contact information for all associations
Instructions for ordering an estoppel
Expected fees and turnaround times
Association Estoppel vs. HOA Information: Which is the best choice for you?
Deciding which is best for you depends on several factors.
An Association Estoppel is best, if the following applies:
You would prefer not to float fees to associations or management companies before closing a deal
You are a title company or real estate law firm looking to optimize your processors’ or paralegals’ workflow.
You work for a title company looking to increase the volume of closings
You work for a real estate law firm looking to maximize other services and billable hours
You would prefer not to waste time requesting a refund from a management company for a canceled deal (Restricted to specific states in the US).
HOA Information Reports are ideal for the following circumstances:
You’re an investor or working with an investor on a pre-contract deal
You have the resources to work directly with the associations but not the time to do the initial research
You’re an investor that wants to pre-screen a community’s regulations, restrictions and amenities
You want to get an estimate on how much to expect in dues on top of the monthly mortgage payments
You want to confirm the property is actually in an association
No matter which one you choose, you’ll be working with a real estate due diligence partner to get the most accurate and current association information. Partnering with a third-party specialized in this research will help grow your business.
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