Services provided by AMS

Association Management Services (AMS) has the specific knowledge and diverse abilities to perform the many complex and important services that community associations require.  Your AMS manager and the entire AMS staff works for your Board of Directors. The Board makes policy and AMS carries out its duties in support of these policies.
A review of resale certificates, transfer and refinance fees:

In real estate transactions, a buyer is entitled to all information that significantly affects the enjoyment and livability of the purchase property. This is often referred to as "resale disclosure" information. In many states, the seller is required by law to provide such information in writing to prospective buyers prior to closing. Unfortunately, many states fail to include information a buyer of property in a homeowner association needs to know. Owners in homeowner associations have unique obligations that single family home owners do not and some of it involves substantial financial liability.

Here is a list of items that an HOA buyer needs to make an informed purchase decision:

  • Are any special assessments being discussed?
  • Copy of the current year’s budget and Year to Date Financial statement.
  • The monthly (usually but may be quarterly or yearly) assessment for the unit/home.
  • Amount of funds in the reserve account for major repairs and replacements.
  • Copy of the most recent year end income and expense statement.
  • Is the HOA involved in any litigation?  If so, get details.
  • Details on the association’s insurance coverage.
  • Is the subject property in violation of architectural guidelines?
  • Review the governing documents, rules and architectural guidelines.
  • Are there any specific rules on pets, parking or rental restrictions?
  • Copies of most recent year’s approved Board meeting minutes.
  • Copies of most recent year’s association newsletters.

Much of this information is maintained and provided (for a fee) by the association. Real estate transactions are complex by their nature. That's why most buyers and sellers use trained professionals like real estate agents, escrow officers and attorneys to assist them. These buyers and sellers rely on these professionals to advise them on the critical issues. A buyer's understanding of real estate law is not critical but understanding the impact of resale information is.

What is the process of getting a resale, refinance or transfer certificate and why are there fees?

When AMS receives a request for a resale certificate, it contains request for information, like the bulleted items above, that must be verified and documented. Each department involved, will access the properties physical and computer files to review the properties records, documents, notices, payments and all communications associated with the property. 

In addition to Resale Certificate fees (new properties or change of owners), there are also transfer fees (change of owners)  and refinance fees.(no ownership change).  “The refinance fee is an administrative fee paid to AMS each time a mortgage company requires that we provide them information on the property including any violations, any assessments owed and/or general information about the association.

This is not a service that the association fees cover in our contract.  It’s outside the contract and part of fees we charge separately, which are disclosed in the management contract with the association.  This fee is not new or unique, in fact it is an industry standard.  Any time we are asked to respond concerning a closing we are required to do the same work whether it is a refinance or an initial set up purchase.”

Mortgage and Title companies may also request a resale certificate to be provided when refinancing an existing property. The process for reviewing and issuing a refinance certificate is the same process as issuing a resale certificate, even though there is no change of ownership, the same information must be researched and provided.

The costs of the resale/refinance certificate is per association the property is a member of and set by each HOA.  Many properties are members of more than one association and the process must be done for each association. The fees are paid directly to the HOA. Contact your HOA manager for the specific cost of a resale/refinance certificate for your community.

All states need a Resale Disclosure Certificate that includes the information unique to community associations. Failure to advise a buyer of significant information creates unnecessary hardship on the buyer and potential liability for the seller, Board, association and real estate agent. On the other hand, a properly informed buyer is more likely to be a supportive member of the board and community. Make sure you request or your realtor requests a resale certificate before you buy. 

Association Management Services and Functions

Physical Operations

•             Establish and meet ongoing maintenance needs.

•             Follow-up on work requests

•             Terminate old contract 

•             Inspect common elements to ensure standards are being maintained.

•             Create and submit he specifications for bids.

•             Obtain necessary maintenance information for decision-making process

•             Review bids       

•             Assist assigned firm in the development of a major repair and replacement program.

•             Place the contract           

•             Inspect association grounds and overall area.

•             Coordinate start dates  

•             Report deed restriction and architectural control violations to the Board for proper action and corrective measures.

•             Monitor contractors.     

•             Enforce Board rules and regulations

•             Inspect completed jobs for final approval            

Finance

•             Establish and monitor bank accounts     

•             Review and prepare invoices for payment.

 

•             Administer assessment collection and delinquency procedures

•             Handle special assessment accounting as necessary.

•             Reconcile bank statement.         

•             Report on the Association's actual expenditures versus budgeted projections.

•             Produce monthly financial information reports.

 •            Assist in the preparing of annual budget.

•             Post and maintain general ledger.           

•             Assist the Board or Budget Committee with preparing the annual operating and reserve budgets prior to the beginning of the fiscal year.

•             Generate checks and issue them to vendors.

Administrative

•             Maintain a current roster of all owners/tenants

•             Maintain records on all association employees (if applicable) and on vendors for emergency data and workers compensation requirements.

•             Provide 24-hour emergency telephone contact

•             Respond to title company calls requesting prorating of dues information (transfer fee, paid by buyer, of $100.00* due on each closing paid to AMS) *Fees may vary by association.

•             Respond to all calls and letters  

•             Provide resale certificates to be paid by buyer and/or seller (at a cost of $100.00*, paid by buyer or seller, with the proceeds going to AMS) *Fees may vary by association.

•             Manage all incoming and outgoing mail 

•             Coordinate the preparing of agendas for all meetings of the Board of Directors.

 

•             Organize and coordinate the annual meeting and attend one annual meeting to provide support for the Board of Directors             

•             Act as a buffer in carrying out board policies that may not be popular with owners such as policies for collecting delinquent accounts, restriction violation, and covenant enforcement.

•             Attend four Board meetings, with dates being specific. 

•             Provide information as needed for insurance requirements

 

Financial Services

Banking and Cash Receipts and Accounts Receivable

•             Reconcile bank accounts monthly.          

•             Record invoices to accounts receivable accounts.

•             Prepare and mail to owners invoices for their annual assessment.           

•             Receive other revenue, and record it to the appropriate income accounts.

•             Receive assessment payments, and record them to accounts receivable ledgers.             

•             Prepare and mail monthly accounts receivable statements as directed by the Board.

•             Assess interest/late fees on delinquent accounts, and record them to accounts receivable ledgers.        

•             Provide information to assist the Association's attorney to collect delinquent monies.

•             Prepare monthly financial statements based on modified accrual accounting standards

•             Prepare and mail late notices on delinquent accounts (three times) as directed by the Board.

•             Deposit all receipts to the Association's custodial account.

•             Assist the Board with placing funds in investment accounts.

•             Record approved expenditures to accounts payable ledgers      

 

Cash Disbursements and Accounts Payable

                General Ledger and Financial Statement

•             Prepare and mail checks for payment of accounts payable          

•             Produce monthly financial statements to include year-to-date Balance Sheet and Income and Expense Statement that reflects month and year-to-date totals with comparisons to budget for month and year-to-date

•             Maintain vendor files to include W9 forms and documentation of all disbursements.

•             Prepare and mail annual 1099 statements           

 

Prepare Monthly Reports

•             Accounts Receivable Aging/Delinquent Account Report.

                Other Reports:

•             Payroll Journal (if applicable)     

•             Bank Reconciliation(s)

•             Detailed General Ledger (month and year-to-date)

•             Accounts Payable Vendor History (year-to-date)

•             Balance Sheet  

•             Income and Expense Statement