Escrow & Title
A Mississippi property has a homeowners association (HOA). At closing, the settlement agent should verify:
AOnly the HOA's name and address
BThat all HOA dues and special assessments are current, and obtain an HOA estoppel letter or similar statement of amounts owed✓ Correct
COnly that the seller is an HOA member
DThat the buyer has read the HOA documents
Explanation
HOA liens for unpaid dues and special assessments can attach to the property and survive a sale if not addressed. The settlement agent should obtain an HOA estoppel letter (certification of amounts owed) and ensure all outstanding HOA obligations are satisfied or properly credited at closing.
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