HOA dissolution/HOA bank funds question on the sale of a property
Hey all, 

Got an interesting question I’ve never actually encountered. Technically I feel it’s a legal question and I have reached out to an Attonery of mine. However I am still curious if you have come across this. 

Selling a commercial building in a major metro. The building has 2 owners and they both live in the property. (It’s zoned mixed use). They established a HOA that they both are in there is also a bank account with the HOA they keep some funds in for insurance and emergencies. 

We are about to have the property under contract and one of the sellers asked me a question I didn’t know how to answer. He said “the money in our HOA bank account can we keep that?”. After reading the sales doc there is nothing about a transfer of HOA. The buyer is buying the whole property and will be the sole owner. 

One Attonery I spoke with said since it’s a 2 member HOA they could just elect to dissolve the HOA a few days before closing. Another thing I read is they could just bring the bank account down to $100 because after reading the HOA documents there is no mention of a dollar amount they need to keep. It just has language stating that the members will agree to a yearly budget.
[{"id": "i93jsc1", "text": "just my two cents from brokerage world, but it seems easiest to just stick in the contract somewhere Buyer acknowledges the existing HOA will be dissolved prior to closing and be done with it.", "replies": [], "depth": 1}, {"id": "i93o3cz", "text": "Why can\u2019t they keep the hoa and the new buyers have to pay the hoa fee lol", "replies": [], "depth": 1}, {"id": "i944zki", "text": "Have them dissolve the HOA and set up a new one(make sure TT has new pmt info). Also get existing HOA financials for review and confirm no delinquencies. \n\nYou probably don\u2019t want to assume any potential liabilities by assuming their HOA.", "replies": [{"id": "i947glc", "text": "I\u2019m representing the sellers who own the HOA", "replies": [], "depth": 2}], "depth": 1}, {"id": "i977uwy", "text": "It really depends how they set up their original HOA covenants and declarations, have the attorney review those and then just make sure that you hash out any details that arise form those in the contract upfront. Also, depending on the State laws of where the sale is taking place in, the government could have some say in the dissolution of the HOA based on those documents.", "replies": [], "depth": 1}]