By Deborah Goonan, Independent American Communities
The state of Alabama recently enacted a new law that will require all homeowners’ associations (HOAs) to register and file governing and financial documents with the Secretary of State.
The information will be uploaded to a searchable database, so that real estate agents, as well as prospective residents – buyers or even tenants – will know in advance if a particular home is subject to deed restrictions and rules of an HOA.
Although a few other states, such as Florida, require all community associations to register with the state, there is no simple way for consumers to locate and read pertinent information about a particular community.
A mandated searchable database will likely create a higher level of transparency for Alabama HOAs. At the very least, it will put consumers on notice of the existence of a homeowners’ association and provide a relatively simple path for due diligence.
Legislation seeks to clear confusion, post documentation for homeowners’ associations