Ask to See Homeowners Association Books!

Here is a new one for me; a while back I had a client that bought a lot to build his home.  The subdivision was a nice upscale area that was only partially completed with most lots not sold.  My client built the home and has been there for two years now. 

Not many of the lots have sold as they are one acre and economy probably had much to do with that.  My client asked to see the books for the subdivision (which has CCNR’s) and he was told no!  So he is doing a hold back on monthly dues until they show the books.

The person in charge and owner has stated the doesn’t have any books to show! (Red flag).  I have never been across this before as a realtor.  The law requires that everything is separate from personal accounts just like realty brokerages.  I guess my warning would be before closings ask to see the books of the Association to see if they are solvent or just collecting money for the cruise they are going to take.