CAI wants Realtors to fully disclose HOA issues

What You Should Know Before You Buy is the last entry in July for the CEO of CAI. It’s a response to severe criticism of HOAs and the lack of full disclosure and allegations of misrepresentations in the promotion and selling process. Here’s how CAI responds — it puts the blame on the Realtor organizations.

“But regardless of where you live or what type of home you are considering – you need to be an educated consumer in order to make a purchase decision that is right for you and your family. While some states have very comprehensive disclosure laws regarding the information a seller must disclose to a buyer regarding a home in a community association, other states have very limited or no such requirements. That is why buyers must know what questions to ask of their Realtor and the seller before signing on the dotted line.

Yet, this publication also fails to fully disclose those aspects of loss of rights and homestead exemptions, failing of adequate due process by kangaroo courts, no accountability to the government (purely a civil action and no state penalties for behavior detrimental to society, like abuse of contractual obligations, etc), foreclosure punishments that can be viewed as excessive under the US Constitution, etc. No, nothing at all is mentioned. There is the implication, as above, that the existing state disclosure laws tell all — not at all!

Consumers must beware. The government is on the side of the developer! And so is CAI.

“Community Matters – What You Should Know Before You Buy”. (CAI 7/27/06 publication can be gotten from its web site)

Published in: on August 14, 2006 at 11:21 pm  Comments (1)  

The URI to TrackBack this entry is:

RSS feed for comments on this post.

One CommentLeave a comment

  1. George,
    Your response to the CAI call for Realtor accountability was predictable. Why not give credit where credit is due? Real estate agents are largely unschooled in HOAs and routinely fail to properly guide HOA sellers and buyers in proper disclosure. If they did, many disgruntled HOA buyers would not close the deal and avoid inevitable conflict that ensues.

    I have tried for years to get the National Association of Realtors to offer HOA specific training for their members and, so far, no luck. I have even offered to share articles I write on the subject for free. Still, no luck.

    While I know you like to beat the CAI (Axis of Evil) drum, there are other players like real estate agents that are directly responsible for misinforming or failing to inform buyers. This is a message that needs to be spread far and wide so that change comes.

    Rich Thompson

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s