The Marion County Agent’s Guide to HOA & Condo Closings: Avoiding Hidden Landmines

You’ve done everything right. Your seller has accepted an offer, inspection came back clean, and the buyer’s financing is locked in. Then, three days before closing, you get the call: there’s an $8,000 outstanding HOA lien no one knew about, and the closing is officially delayed.

If you’re a listing agent in Marion County, this nightmare scenario isn’t a hypothetical—it’s a reality that has derailed more closings than anyone wants to admit. And here’s the brutal truth: when an HOA or condo association issue blows up a deal, it doesn’t matter whose “fault” it was. Your client is frustrated, your reputation takes a hit, and your next referral just walked out the door.

The good news? These disasters are entirely preventable. But only if you understand what you’re dealing with—and take proactive action early in the transaction.

Why HOA & Condo Association Status Matters More Than You Think

Let’s start with the stakes. In Marion County, approximately 30% of residential properties are governed by some form of homeowners or condo association. That means nearly one in three of your listings comes with an additional layer of complexity, legal requirements, and potential deal-killers that most agents don’t fully understand.

Here’s what makes HOA and condo properties different—and why they demand your immediate attention:

Legal Compliance is Non-Negotiable
Florida law requires specific disclosures and documentation when selling HOA or condo-governed property. Miss a required disclosure, and you’re not just looking at a delayed closing—you’re potentially exposing yourself and your seller to legal liability post-closing.

Hidden Liens Can Destroy Deals
HOAs have the legal right to place liens on properties for unpaid assessments, special assessments, and fees. These liens take priority over most other debts and must be cleared before closing. The problem? Many sellers don’t even know these liens exist until the title company uncovers them during the commitment process.

Estoppel Letters Take Time—And Are Mandatory
The estoppel letter (or condo questionnaire) is the official document from the association that confirms all fees are paid, provides the current assessment amounts, and discloses any pending special assessments or violations. By law, associations have 10 business days to respond to an estoppel request in Florida—but in practice, it often takes longer. If you wait until the last minute to order this, you’ve just added unnecessary risk to your closing timeline.

How to Determine If Your Listing is Subject to an HOA or Condo Association

This should be step one—before you even list the property. Here’s your verification checklist:

1. Ask the Seller Directly
Start with the obvious: “Is this property part of a homeowners association or condo association?” But don’t stop there. Sellers often don’t fully understand what counts as an HOA (especially in communities with minimal enforcement), so verify independently.

2. Check the Property’s Deed and Recorded Documents
Pull the deed from the Marion County Clerk’s office records. Look for references to “covenants,” “restrictions,” “declarations,” or “bylaws.” If the property is part of a planned community, the deed will typically reference the HOA’s governing documents.

3. Review the MLS Listing Information
The MLS should indicate HOA/condo status, but don’t rely on this alone—errors happen. Cross-reference with your own research.

4. Contact Your Title Company Immediately
A competent title company (like True Title of Central Florida) will identify HOA or condo governance as part of the title search process. But here’s the key: don’t wait for the title commitment to be issued to ask. Reach out proactively during the listing phase so you know what you’re dealing with upfront.

5. Look for Physical Clues
Gated communities, shared amenities (pools, clubhouses), common area maintenance, and architectural guidelines are all indicators of HOA or condo association governance.

The Proactive Agent’s Action Plan: Steps to Take When Your Listing Has an HOA or Condo Association

Once you’ve confirmed your listing is governed by an HOA or condo association, it’s time to get ahead of potential problems. Here’s your step-by-step playbook:

Step 1: Request HOA/Condo Documents Immediately
Don’t wait for a buyer. Order the governing documents, recent meeting minutes, budgets, and reserve studies as soon as you list the property. Why? Because buyers (and their lenders) are going to scrutinize these documents, and you need to know if there are any red flags lurking before you waste time on a deal that might fall apart.

Step 2: Verify the Seller’s Account Status
Confirm with the association or management company that the seller’s HOA/condo fees are current. Request a detailed account statement showing the payment history. If there are any outstanding balances—even small ones—get them paid immediately.

Step 3: Order the Estoppel Letter Early
As soon as you have a ratified contract, order the estoppel letter. Do not wait. This document is required for closing, and delays in receiving it are one of the most common reasons HOA/condo closings get pushed back. Partner with a title company that understands the urgency and has established relationships with local management companies to expedite this process.

Step 4: Review for Special Assessments and Violations
Special assessments (one-time charges for major repairs or improvements) can be a deal-breaker for buyers, especially if they’re significant. Similarly, any outstanding violations or architectural infractions need to be disclosed and resolved before closing. The estoppel letter will reveal these issues, but if you can identify them earlier in the listing phase, you can address them proactively.

Step 5: Communicate Transparently with All Parties
Keep your seller, the buyer, the buyer’s agent, and your title company in the loop. If a potential issue surfaces—like a pending special assessment or a slow-responding management company—flag it immediately. Transparency builds trust and gives everyone time to problem-solve before it becomes a crisis.

Red Flags, Obstacles, and Landmines: What Can Go Wrong (and How to Avoid It)

Even with the best preparation, HOA and condo closings come with inherent risks. Here are the most common issues Marion County agents face—and how to navigate them:

Red Flag #1: Undisclosed or Unpaid Special Assessments
Special assessments are additional fees levied by the association for major repairs (think: roof replacement, parking lot resurfacing, pool renovations). These can range from a few hundred dollars to tens of thousands. If the seller hasn’t paid their share, it becomes a lien on the property.

How to Avoid It: Order the estoppel letter early and review it carefully. If a special assessment is disclosed, determine who is responsible for payment (seller or buyer) and negotiate this in the contract upfront.

Red Flag #2: The “Slow” or Unresponsive Management Company
Some HOA management companies are notoriously slow to respond to estoppel requests, provide documents, or process payoffs. This can delay your closing by weeks.

How to Avoid It: Work with a title company that has established relationships with local management companies and knows how to apply pressure when needed. True Title of Central Florida has deep roots in Marion County and can often expedite these requests where other companies cannot.

Red Flag #3: Pending Litigation Involving the Association
If the HOA or condo association is involved in a lawsuit (against a contractor, another owner, or regarding the building itself), this can spook lenders and buyers—and in some cases, make the property uninsurable or unfinanceable.

How to Avoid It: Review the association’s meeting minutes and financial statements for any mention of litigation. If litigation is disclosed, consult with the title company and the buyer’s lender immediately to determine if it’s a deal-breaker.

Red Flag #4: Inadequate Reserves or Poor Financial Health
A condo or HOA with depleted reserves or a history of financial mismanagement is a major red flag for buyers and lenders. FHA and VA loans, in particular, have strict requirements regarding association reserve levels.

How to Avoid It: Request the association’s budget and reserve study early. If the financials are weak, be prepared to disclose this to buyers upfront—and potentially adjust your pricing or marketing strategy.

Red Flag #5: Incomplete or Missing HOA Documents
Buyers and lenders require a full set of governing documents (declaration, bylaws, rules and regulations). If the association can’t produce these—or if they’re outdated—it can halt the closing.

How to Avoid It: Obtain these documents at the listing stage and have them ready to provide to buyers immediately upon request.

Your Closing Guarantee: Partner with a Title Company That Gets It

Here’s the reality: as a Marion County listing agent, you can’t afford to babysit every HOA or condo closing. You need a title partner who understands the local landscape, has the expertise to identify and resolve issues proactively, and treats your reputation as if it were their own.

True Title of Central Florida was built specifically to address the pain points you face. Our team doesn’t just process transactions—we proactively problem-solve. We know the local management companies, we understand Marion County’s unique municipal requirements, and we have the systems in place to ensure your closings happen on time, every time.

When you list an HOA or condo property, here’s what you can expect from us:

• Immediate HOA/Condo Verification: We’ll identify association governance during the title search and alert you to any potential issues before they become problems.
• Expedited Estoppel Requests: We maintain direct relationships with local management companies to ensure faster turnaround times.
• Proactive Lien Resolution: If we uncover a lien or outstanding fee, we don’t just notify you—we provide a clear action plan to resolve it quickly.
• Transparent Communication: You’ll never be left in the dark. We provide regular updates and flag potential roadblocks immediately.

Your reputation is our responsibility. That’s not just a tagline—it’s how we operate. Because when your closing goes smoothly, you get the referral. And when you get the referral, we get the repeat business. That’s the partnership.

If you’re ready to stop worrying about last-minute HOA surprises and start closing deals with confidence, let’s talk. Reach out to True Title of Central Florida today, and let us show you what a true partnership looks like.