What is a clearance letter?
Any home that is sold or refinanced in the Oakwood Subdivision must have a clearance letter stating that all annual assessments (and any late fees) have been paid.
On your right you can send a message to the Association Treasurer requesting a clearance letter. Please allow two weeks to process this request. Should your attorney require more information about the Association, our financials and Board Minutes are available.
***Please note that all homes in the subdivision are single family – we are not a condominium association and therefore do not provide the 22.1 disclosure form.
Why do I need a clearance letter?
Banks and lending companies want to legally be first in line to collect if a homeowner defaults on his mortgage or declares bankruptcy. If a homeowner owed the OHA dues or other funds when an Oakwood home is sold or a new mortgage is obtained, then the OHA becomes legally first in line and not the lender. Therefore, the lender will require a letter during the closing that states either that the homeowner owes nothing to the OHA or, if a balance is due, what that amount is. The bank will require that the title company collect the balance due and send it to the OHA as part of the closing process.
How long before my closing should I call?
The OHA Board will do everything they can to provide a quick turnaround on all requests. However, they do allow the Treasurer to go on vacation and to leave town for other occasions. Please allow at least two weeks for a clearance letter. The OHA does not have the ability to fax; therefore, at a minimum, you must allow time for us to mail you the letter via US mail.
What happens if I owe money or have an OHA placed lien on my property?
If there is a current OHA balance due, you have two options. The recommended option is to pay the OHA the amount due before the closing so we can issue a clear clearance letter. This greatly simplifies your closing. The second option is to have the title company collect the funds at closing and forward them to the OHA. In either case, the lender will require you to pay the funds before they will close on your house.
If you have a lien on your property, contact the OHA attorney at (630) 455-0500. The attorney will not remove the lien until you pay all balances including the fee for removing the lien.
What happens if I purchased a home in Oakwood and learn that there are outstanding OHA dues or fees or that I have a lien on my property?
It is the responsibility of the title company used during closing to verify that there are no liens on the property and to collect any outstanding funds due to the OHA. The new owner assumes all liability for the debt if not collected during the closing. The new owner's recourse is to contact the title company and the previous owner who not disclose the debt. The outstanding dues and liens can be resolved with the OHA as per above.