Most states require a builder or seller to give buyers a defined package of information before closing on a home in a common interest development — typically the recorded governing documents, the current or projected operating budget, any pending litigation involving the association, and a summary of the assessment obligations the buyer is taking on.
The goal is straightforward: a buyer shouldn't discover major financial or legal obligations only after they've already closed. Disclosure requirements exist to put that information in front of them while there's still time to walk away or negotiate.
Disclosure timing is typically tied to the purchase contract process — buyers must receive the required documents within a specific window before closing, often with a rescission right if disclosure happens late or is incomplete. In California, for example, disclosure obligations are set out directly in the Davis-Stirling Act, and other states have their own equivalent statutes with different timing rules.
Builders selling across multiple states need to track each state's specific disclosure deadline separately rather than applying one standard timeline everywhere.
Incomplete or late disclosure can give a buyer the right to rescind the purchase, and in some states can expose the builder to statutory penalties or liability well beyond the immediate transaction. It can also surface later during an HOA dispute, if homeowners argue they were never properly informed of an obligation they're now being asked to meet.
Builders who treat disclosure as a checklist item tied to a specific closing date — not a document dump handled informally — are in a much stronger position if a disclosure dispute ever comes up.
