For properties with an HOA, which report is typically required by buyer and lender?

Study for the California Escrow Exam. Dive into detailed content with flashcards and multiple choice questions, accompanied by explanations and hints. Ensure your success on test day!

For properties with an HOA, buyers and lenders rely on an HOA information certificate to learn about the association’s financial and governance status. The HOA is the proper source for this document because only the association maintains current data on regular and special assessments, delinquent amounts, reserve funds, upcoming changes to dues, governing rules, insurance coverage, and any ongoing or pending litigation. This certificate lets the buyer and lender verify what they will owe to the HOA and assess potential risks or upcoming costs, such as planned assessments or changes in restrictions. It’s provided by the HOA after a request and is the most accurate source for HOA-related obligations, rather than a title company or city report.