CAI recommends Realtor HOA education

The RA-CAI-RE Triangle, Part 2[1]

Part 1 of this series confined itself to the historical relationship between NAR, CAI and ULI.[2]  Part 2 addresses the 2015 NAR magazine article[3] acknowledging that HOA buyers are largely uninformed and lack general knowledge of HOA affairs and issues.

The author informs NAR readers that, among other things,

Many owners do not recognize that the benefits of shared ownership involve relinquishing some of the independence of sole ownership. That’s the root of so many of the HOA horror stories we’ve all heard. . . . Truly, persons who want a home that is their castle and theirs alone should not live in HOAs. . . . Many owners in HOA communities consider the documents unimportant, treating them as if they were an appliance owner’s manual.

The financial health of an HOA community also impacts owners. To keep monthly assessments low, some HOA boards will not accumulate sufficient funds in a reserve account to offset ongoing deterioration of common elements. . . . HOAs will need major special assessments or bank loans when big building components need replacement.

The author concludes with, “But in order to ensure that every owner gets the most out of their HOA, they must be educated about them. That, of course, starts with a knowledgeable real estate professional.”

Bravo you say for calling this serious question of the lack of full disclosure to NAR and its agent members!  Bravo!  But wait, the author, Kelly G. Richardson, according to his bio “clip,” is a lawyer and active Realtor[4] in California.   What is not revealed, I discovered, is that Richardson is also an active CAI member in California’s CAI chapters (Calif. has several CAI chapters).

Being thus alerted, I had to examine any underlying, real message contained in this article. My first thought was: Who’s going to offer these classes? RAs offer many real estate classes in every state, but who will educate the RA educators? Obviously, following in the footsteps of several states on HOA manager licensing, let CAI do it!

As I see it, although the article called attention to homeowner dissatisfaction, it was addressed to Realtors and not the general public.  If pursued by NAR, it would be another channel for CAI to further indoctrinate uninformed agents and real estate departments into the CAI HOA School of Thought that advances its special interest agenda, but not truth, the whole truth, and nothing but the truth.  The whole truth would still be missing.

Furthermore, there is no call for full disclosure by agents who, supposedly now, have come into the light and can spread their knowledge to the uninformed HOA buyers.  A very important omission for NAR that advertises its agent members, known as Realtors, as friends of home buyers.  Full disclosure is a state requirement under agency and real estate law.

Part 3 will examine disclosure, its legal basis, who wants what to be disclosed, and the required forms, if any.

 

References

[1] I use the following notation in this series.  “RA” is the collection of the national and state chartered Realtor associations.  “CAI” is the Community Associations Institute.  “RE” is the collection of state real estate departments.  Specific organizations will be identified as such: “NAR” is the National Assn of Relators; “AAR” is the Arizona Assn of Realtors; “ADRE’ is the Arizona real estate department.

[2] See The Realtor association and HOA-Land.

[3] A Note of Caution About HOAs, RealtorMag, Official Magazine of the National Association of Realtors, February 2015. See also my Commentary, Realtor magazine publishes HOA socialism by CAI Trustee.

[4] “Realtor” is a registered trademark of NAR.

Published in: on October 2, 2017 at 3:27 pm  Leave a Comment  

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