HOA closing letter is an official document that the Board of Directors of HOA sends to the homeowner. It includes the date of the HOA Transfer, the name and address of the new owner, and an official statement saying that the property is now under the jurisdiction of the new homeowner association.

It ensures an effortless transition between the new and the old homeowners association. But how do you write a hoa closing letter?

You don’t need to look anywhere else for the answer. We are here with the HOA closing letter template that you can use:

Date

HOA’s Name

To whom it may concern.

Closing Date:

Name of the seller:

Address of the property:

Here is the status update of the account to this date:

(Amount of money) due for the (year/month) is due/paid.

(Amount of money) to be collected for the (year/month).

(Amount) HOA Transfer fees.

(Amount) Clearance letter fees.

(Amount) total due to _____.

(Amount) of working capital to be transferred between buyer and seller).

Verified by (Name)

Signature

(Designation)

Being a president of the HOA board comes with tons of responsibilities. One of them is providing a closing letter to every member of the homeowner association at the time when their account is closed.

Keep in mind to include the balance, contact information, and account number of the HOA so that the members can easily get in touch with you if they have any queries or can make the payments easily.

Some tips to follow while writing the closing letter from HOA are –

  • Include all the relevant information. In addition to the aforementioned details, mention the date on which the account was closed, the reason for the same, and the contact information of the HOA.
  • Keep your message clear and concise by using a professional and friendly tone. Refrain from using any technical terms.
  • Proofread before finally sending it to check for any errors or typos.

Some FAQ’s around HOA Closing Letter:

Who requests the HOA closing letter, buyer or seller?

Generally, it is the seller who requests an HOA closing letter. But it also depends on the terms and conditions stated in the real estate contract.

Is an HOA Closing Letter Legally binding?

No, it is not a legally binding document. Instead, it is a certificate that acts as a disclosure of property and HOA-related information but doesn’t create or enforce legal obligations. The legal aspects of a property sale are determined by purchase contracts, titles, and applicable laws.

Do all HOAs require an HOA Closing Letter during property transactions?

Absolutely not. Whether an HOA requires a closing letter or not depends on the local regulations or specific transactions. You must check with your homeowner association to see if a closing letter is required for a particular property sale.