HOA and POA are the same thing. They are the rules of the HOA – homeowners association. ( or POA – property owners association) When a seller sells to the buyer, seller needs to provide buyer with the HOA resale documents. This is so the buyer understands that when he buys, he is also agreeing to the rules of the community.
For instance, the buyer might not be able to paint his front door purple and park an 18 wheeler in the parking lot. So it’s a protective rule protecting property value.
The Buyer has 3 days after receipt of these documents to either agree by being silent or voiding the contract based on HOA documents. The buyer is not required to state why.
Note: It is best for the seller to order the HOA or condo docs right after the listing agreement is signed. The association has 14 days to provide the documents, so you want to have them ready as soon as a contract comes in. You don’t want to give the buyer more time on top of the 3 day cancellation time period.
This has been another exciting: “Training in a Minute“.
Keith