Final answer:
Sellers of condominiums and common interest subdivisions must make special disclosures to buyers, including the association's governing documents, financial statements, pending litigation, reserve funds, and minutes of meetings.
Step-by-step explanation:
In the context of real estate, sellers of condominiums and common interest subdivisions must make certain special disclosures to potential buyers. These disclosures are designed to provide transparency and protect the buyer by informing them of important information regarding the property and the association they are buying into. The requirements for these disclosures can vary by jurisdiction, but generally include details such as:
- The governing documents of the association (e.g., bylaws, covenants, conditions, and restrictions).
- Financial statements and budgets of the homeowners' association.
- Any pending litigation or judgments against the association.
- The current amount of the association's reserve funds.
- Minutes of the most recent association meetings.
- A statement of any upcoming special assessments.
These disclosures are critical for a prospective buyer to understand the obligations and financial health of the common interest community they are considering joining. It's essential for sellers to comply with the specific disclosure requirements to ensure a legally sound transaction.