Duty of disclosure

Duty of Disclosure in a Homeowner Association

In the context of a Homeowner Association (HOA), the ‘Duty of Disclosure’ refers to the obligation of the HOA to provide specific information to its members. This duty is often mandated by state law, and its specifics can vary depending on the jurisdiction. However, common elements that the HOA is usually required to disclose include financial statements, meeting minutes, rules and regulations, and any changes to these elements.

The ‘Duty of Disclosure’ is crucial in maintaining transparency and trust between the HOA and its members. It ensures that the members are kept informed about the association’s activities, financial health, and any changes that may affect their rights or responsibilities. This obligation is usually carried out through regular meetings, newsletters, or special notices sent to the members.

In some cases, the ‘Duty of Disclosure’ may also require the HOA to disclose specific information to prospective members. This is to ensure that people who are considering buying a property in the association’s jurisdiction are fully aware of the rules, fees, and other obligations that they will be subject to.

Failure to fulfill the ‘Duty of Disclosure’ can lead to legal repercussions for the HOA. Members who feel that they have not been adequately informed may bring a lawsuit against the association. Therefore, it is essential for the HOA to take this duty seriously and to ensure that all disclosures are made promptly and thoroughly.