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HOA Estoppels—What Do They Mean?
Posted on Mar 20th, 2025
Whether you are looking to buy a new home or to sell your property, an HOA estoppel letter is a perfect snapshot of your financial obligations as a homeowner. An estoppel letter lists the outstanding HOA violations and/or balances owed so that buyers know what they are walking into. Here are some facts you should know about estoppel letters:
· Can homeowners negotiate with buyers to fix violations after closing or must they be cleared before closing? Violations don’t have to be cleared prior to selling and they won’t hold up the closing process. The violations listed on the estoppel make the buyers aware of violations they may be responsible to clear.
· Must late fees be paid before selling or can buyers agree to pay them? While late fees should be paid prior to closing, the assessment can be taken care of at closing. At the closing stage, it is the title agent’s responsibility to ensure the late fees to be collected.
· Do estoppel issues stop or delay closings? If the buyer wants the violations corrected before they buy this can delay the closing process. If there isa large sum that needs to be collected it can also create delays.
· Can homeowners negotiate with buyers to fix violations after closing or must they be cleared before closing? Violations don’t have to be cleared prior to selling and they won’t hold up the closing process. The violations listed on the estoppel make the buyers aware of violations they may be responsible to clear.
· Must late fees be paid before selling or can buyers agree to pay them? While late fees should be paid prior to closing, the assessment can be taken care of at closing. At the closing stage, it is the title agent’s responsibility to ensure the late fees to be collected.
· Do estoppel issues stop or delay closings? If the buyer wants the violations corrected before they buy this can delay the closing process. If there isa large sum that needs to be collected it can also create delays.