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6 Homeowners Association (HOA)
Governing Documents 9 Title Report or Title Commitment

In addition to CC&Rs, HOAs may be governed The title report or commitment contains important
by Articles of Incorporation, Bylaws, Rules and information and is provided to the buyer by the
Regulations, and often architectural control standards. title/escrow company or agent. This report or
Read and understand these documents. Also, be commitment lists documents that are exceptions to
aware that some HOAs impose fees that must be the title insurance (Schedule B Exceptions). Schedule
paid when the property is sold, so ask if the purchase B Exceptions may include encumbrances, easements,
of the property will result in any fees. Condominium and liens against the property, some of which may
and planned community HOAs are regulated by affect the use of the property, such as a future
Arizona statutes. They are not under the jurisdiction of addition or swimming pool. Make sure you receive
the Department of Real Estate (ADRE). Nonetheless, and review all of the listed documents. Questions
the Arizona’s Homeowner's Association Dispute about the title commitment and Schedule B
Process is administered by the ADRE. documents may be answered by the title or escrow
http://bit.ly/2ebBSLH and http://bit.ly/2e8jdM3 (Chapter 16 & 18 officer, legal counsel, or a surveyor.
of the Arizona Revised Statutes-Title 33) http://bit.ly/1rCq9kd https://www.homeclosing101.org/ (American Land Title
(ADRE HOA Information) https://azre.gov/consumers/hoa Association)
(Homeowners Association Dispute Process)
https://insurance.az.gov/consumers/help-hometitleflood-
7 HOA Disclosures insurance (Arizona Department of Insurance)

If purchasing a resale home in a condominium or planned 10 Loan Information and Documents
community, the seller (if fewer than 50 units in the
community) or the HOA (if there are 50 or more units) Unless a buyer is paying cash, the buyer must qualify for a
must provide the buyer with a disclosure containing a loan in order to complete the purchase. A buyer should
variety of information. complete a loan application with a lender before making an
offer on a property if at all possible and, if not,
http://bit.ly/2ebBSLH (A.R.S. 33-1260); http://bit.ly/2e8jdM3 (A.R.S. immediately after making an offer. It will
§33-1806) be the buyer’s responsibility to deposit any down payment

and ensure that the buyer’s lender deposits the remainder
8 Community Facilities District of the purchase price into escrow prior to the close of
escrow date. Therefore, make sure you
Community Facilities Districts (CFDs) are special taxing get all requested documentation to your lender as soon as
districts that use bonds for the purpose of financing possible.

construction, acquisition, operation and maintenance https://www.consumerfinance.gov/owning-a-home/
of public infrastructure that benefits the real property (Buying a house: Tools & Resources for Homebuyers)
owners comprising the CFD members. Roadways, https://www.hud.gov/topics/buying_a_home (HUD.gov)
public sewer, utility infrastructure and public parks are
examples of the types of public infrastructure paid for 11 Home Warranty Policy
by CFDs. CFDs have a Governing Board that may be the
City Council acting as the board or a stand-alone board. A home warranty [policy] is a service contract that typically
Any member of a CFD may request disclosures from covers the repair and/or replacement costs of home
this board. Questions to ask include: the amount still appliances and major systems such as heating, cooling,
owed and how many more payments are left in order plumbing, and possibly other components of a home that
to pay off the CFD for the property. It is important that fail due to normal usage and age. Coverage varies
you review the Detailed Property Tax Statement which depending on the policy. Be aware that pre-existing
will show the current amount due to the CFD. property conditions are generally not covered. A home
CFDs are most commonly found on the property’s warranty may be part of the sale of the home. If so,
detailed property tax statement from the County Tax buyers should thoroughly read the home warranty
Assessor. The local municipality or county can also be a contract to understand coverage, limitations, exclusions, and
source of CFD information. costs associated with the policy.

Arizona Department of Real Estate
Page | 4 of 13 Buyer Advisory (December 2020)