A guide to HOA disclosure: Everything you need to know

What are HOA disclosures?

In South Carolina, HOA disclosures are documents that outline essential details about a homeowners association (HOA), including its financial health, governing rules, and obligations for homeowners. They provide prospective buyers with insights into the association’s structure, helping them understand what to expect in terms of HOA fees, restrictions, and responsibilities after purchasing a home within the community.

These disclosures often include:

• Governing documents: Define the rules and structure of the HOA.
   
• Financial statements: A summary of the HOA’s financial position, including annual budgets and reserve funds.
   
• Assessment history: Information about regular dues, past increases, and any upcoming fee adjustments.
   
• Pending litigation: If the HOA is involved in any legal disputes, this must be disclosed to prospective buyers.
   
• Insurance coverage: Details on the association’s insurance policies, outlining coverage for common areas and potential liabilities.

While South Carolina law does not explicitly mandate HOA disclosures, these documents are commonly provided as part of standard real estate transactions. Many buyers request them, and real estate contracts often require them to support transparency in HOA-governed communities. FirstService Residential has over 30 years of experience supporting boards and residents in South Carolina HOAs, from compiling and distributing disclosure documents to making transactions smoother for all parties involved.

Are HOA disclosures required?

South Carolina does not have a state-mandated requirement for HOA disclosures in every real estate transaction, unlike some other states with strict disclosure laws. However, standard purchase agreements or buyer requests typically require these materials. Additionally, many HOAs in South Carolina voluntarily provide disclosure documents to protect both buyers and sellers from potential misunderstandings.

While there is no specific state law mandating HOA disclosures, South Carolina does have a general disclosure requirement under Title 27, Chapter 50 of the South Carolina Code of Laws, known as the Residential Property Condition Disclosure Act. This law requires sellers of residential real estate to provide a disclosure statement detailing known issues with the property, such as structural defects, plumbing or electrical concerns, and other material facts that could affect value. The law also requires sellers to disclose whether the property is subject to an HOA. However, it does not mandate that sellers provide detailed HOA documents, financial statements, or pending litigation records. Instead, real estate contracts or buyer requests typically dictate the inclusion of these materials.

What if HOA disclosures are not provided?

When HOA disclosures are not supplied, buyers may enter into an agreement without full knowledge of the financial and regulatory obligations associated with their new home. This can lead to frustration and disputes down the road. While South Carolina does not have strict laws requiring HOA disclosures, failing to provide these documents can still have consequences.

For sellers, withholding HOA-related information may lead to legal complications if buyers discover unexpected fees or restrictions after closing. Some real estate contracts allow buyers to cancel a transaction or seek recourse if they are not provided with essential HOA details before finalizing their purchase (though this is contract-dependent, not an automatic right under state law).

For HOA boards and property managers, the absence of clear disclosures can lead to misunderstandings between homeowners and the association. This can create unnecessary administrative burdens and strain community relationships. A well-prepared disclosure package may help prevent these issues, keeping transactions smooth and transparent.
 

What are HOA disclosure fees?

HOA disclosure fees are charges imposed by the association for compiling and providing necessary documents during the sale of a property. These fees cover the administrative work required to gather financial statements, governing documents, and other relevant records that must be shared with the buyer.

In South Carolina, HOA disclosure fees vary by community and are typically outlined in the association’s governing documents. The fee may be set to cover:

• Administrative costs associated with document preparation.
   
• Legal review of governing documents.
   
• Printing or digital formatting of required paperwork.
   
• Processing and handling costs.

These fees are rarely negotiable and typically must be paid before the documents are released. Property management companies like FirstService Residential can help HOAs streamline this process so all required information can be compiled efficiently while maintaining compliance with community guidelines.
 

Do you have to pay HOA disclosure fees?

Whether a buyer or seller is responsible for paying the HOA disclosure fee depends on the terms outlined in the real estate contract. In many cases, the seller covers the cost, as it is their responsibility to provide the necessary documentation to the buyer. However, some negotiations may result in the buyer agreeing to pay part or all of the fee.

Regardless of who pays, disclosure fees must be settled before the transaction can be completed. Without them, the necessary documents cannot be processed, which may delay closing. To avoid last-minute complications, it’s important for both parties to clarify these details early in the transaction process.

For HOA boards, clearly defining disclosure fees in the association’s governing documents helps eliminate confusion and maintains consistency in transactions.
 

Partnering with experts for a seamless HOA disclosure process

For South Carolina HOAs, proactive disclosure practices benefit not only buyers and sellers but also the entire community. A clear, standardized process for providing HOA disclosures helps maintain transparency, avoid disputes, and support a smooth transaction experience for all involved.

At FirstService Residential, we specialize in assisting HOA boards with governance, compliance, and documentation — helping communities operate more efficiently while simplifying the disclosure process for sellers and buyers. With our expertise in property management, we provide customized solutions that improve operational efficiency and promote long-term stability in your association.

Whether you’re a board member seeking to refine your HOA’s disclosure policies or a homeowner navigating the selling process, our team is here to help. Contact FirstService Residential today to learn more about how we can support your community’s needs.