Legal Question in Real Estate Law in California

Couple questions

1.Pest report ordered by HOA-Does the HOA have to release report to potential buyer? They informed the seller's agent, 1-31-2012, they were conducting an inspection of the entire building on 2-6-2012 after seeing the Pest inspection report ordered by the buyer that revealed termites & minor plumbing leaks. (common pipes-HOA responsibility).

The HOA refuses to release that 2nd report until after a board meeting. Escrow is now being delayed which is costing me money. Does the HOA have to release the report they ordered? My agent has been trying to get the report and board president refuses. I am on the board and have requested it as well as it is a disclosure needed to close the sale. HOA president just says it shows the same as the 1st inspection for the unit. The buyer has been ready to sign all the final docs but is only waiting until seeing 2nd report as recommended by his agent.

2.What if buyer backs out of the transaction, what recourse do I have for losing out on a sale and if I sell at a lower price. Multiple offers resulted in sale over appraised value?

The HOA has given a letter saying all repairs necessary/recommended are their responsibility and not the home owner/seller and they will take care of them...most which are already in the reserves. (replacing exterior siding and dryrock work)

Thank you,


Asked on 2/19/12, 7:57 am

1 Answer from Attorneys

The simple answer to your direct question is "no," the HOA does not have to release their report unless they choose to do so, or it is required under the CC&R's or bylaws. On the larger question regarding delay and possible cancellation of the sale, I am confused as to why that would be. Has the buyer not yet released the inspection contingency? That is usually done well before COE is due, which is why it puzzles me that this would be delaying the close. If they have released the contingency, then I am confused why this is holding up anything. They are committed to close on time once contingencies are removed. Your agent/broker seems not to be doing their job if they are not explaining all this to you and advocating for you. If you cannot get your agent/broker to explain this to your satisfaction and get the deal moving forward, feel free to contact me to get me the details of why this is stalled and I can tell you more.

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Answered on 2/19/12, 10:27 am


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