Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am buying a house. When I look at the contract, the Addendum about HOA (In Texas, this is called ADDENDUM FOR PROPERTY SUBJECT TO MANDATORY MEMBERSHIP IN A PROPERTY OWNERS ASSOCIATION) has been pre-assigned by the sellers. There is one selection saying : 4. Buyer does not require delivery of the Subdivision Information.
Because this has been pre-assigned by the seller, I can not change it.
My question is, what is the worst case by NOT seeing the Subdivision Information (it includes the deed restrictions, and resale certification from HOA) before closing? under what circumstances, the seller wants to do this?
> My question is, what is the worst case by NOT seeing the Subdivision Information (it includes the deed restrictions, and resale certification from HOA) before closing? under what circumstances, the seller wants to do this?
You DO want to see this stuff before completing a purchase. You could be buying into an HOA with no reserves, an incompetent board, NO board, or maybe with lawsuits pending. Either the seller is not aware of exactly what he signed OR I would expect something nefarious.
If you are in a very hot market maybe he is just doing it because he can (or wants to get you to pass on the property so he can take a better offer he has in the wings).
I would politely ask to have this changed and the information provided. If you get pushback, think very hard about whether you want the property with this uncertainty.
I guess I will see this before closing because the Title company would need it to close. But at the end of the pending period with earnest money on the table, I would be in a very bad situation.
The possible reason I can think is the restriction violations by current owner. Since it is a very good community I would say there should be no big issue with HOA itself.
Quote:
Originally Posted by rational1
> My question is, what is the worst case by NOT seeing the Subdivision Information (it includes the deed restrictions, and resale certification from HOA) before closing? under what circumstances, the seller wants to do this?
You DO want to see this stuff before completing a purchase. You could be buying into an HOA with no reserves, an incompetent board, NO board, or maybe with lawsuits pending. Either the seller is not aware of exactly what he signed OR I would expect something nefarious.
If you are in a very hot market maybe he is just doing it because he can (or wants to get you to pass on the property so he can take a better offer he has in the wings).
I would politely ask to have this changed and the information provided. If you get pushback, think very hard about whether you want the property with this uncertainty.
You can Google the hoa and usually find the covenants and governing docs online. Or you can scratch thru and initial where they had checked that you do not need to see them and send back to them to initial. Your agent should then ask their agent for a copy which they must provide.
Any fines that haven't been paid for prior violations must be paid. I'd also call the hoa and ask if there are any current assessments, or expected assessments.
You definitely want to read all hoa docs before closing. There is a time limit in the addendum/contract where you could back out and get earnest money back within "x" number of days of receiving hoa docs.
Some has ban trucks from being parked in driveways, so if you own a truck that won't fit in garage it could be an issue. Some ban trailers, or rv's. Some condos ban pets or have size restrictions or limits. Some ban sheds out back. Some ban renting your home out if you move. Read them thoroughly.
You seem to be surprised by this. So do you mean it was listed this way and your realtor did not reveal this to you in advance and did not tell you the ramifications of not being informed about reserve funds, expenses, etc.?
Texas Law covers buyers in the many items the law lists that must be provided for you by the POA. And the ramifications to the POA for not doing this. Unless the buyer chooses not to take advantage of this great law.
However, if you mean the addendum was signed first by the seller.....
your realtor did not explain the addendum to you. Hope you do have your own Realtor. And hope the Realtor did not try have you feel you cannot enjoy the Texas Law regarding your receiving POA documents. It is your decision to say you do not want the numerous items Texas says your seller's POA is by law required to give to you.
If it is just signed by the seller, yes, these things are usually not signed with all parties in the room at the same time. You see there is a large area for the sellers to sign and, beside it, a large area for the buyers to sign. It's is not sellers sign OR buyers sign. It's both.
So the seller signed first. You are next.
There are a lot of things that are by law to be in that packet from the POA in order to protect you. In the interest of time, these are the items:
Your Realtor told you these things have to be delivered by the 10th day by law, right?
And, by law, if it's not delivered, a court can direct the POA to do so or there can be a judgment against the POA for up to $500 and court costs, etc. etc.
Here is the Texas Statute, about half way down this page at Sec. 207.004 Owner's Remedies for Failure by POA....
The HOA addendum has been pre-drafted and signed by the seller. It says 4. Buyer does not require delivery of the Subdivision Information.
The buyer will not see the info before the Title company see it. Once in pending period, I am already paying the earnest money. That's why I have the concerns what exactly it costs me. Because the other choices (1-3) give me the right to quit the contract after reading the Subdivision Info. By choosing 4, basically, buyer gives up reading the HOA info.
Quote:
Originally Posted by cully
You seem to be surprised by this. So do you mean it was listed this way and your realtor did not reveal this to you in advance and did not tell you the ramifications of not being informed about reserve funds, expenses, etc.?
Texas Law covers buyers in the many items the law lists that must be provided for you by the POA. And the ramifications to the POA for not doing this. Unless the buyer chooses not to take advantage of this great law.
However, if you mean the addendum was signed first by the seller.....
your realtor did not explain the addendum to you. Hope you do have your own Realtor. And hope the Realtor did not try have you feel you cannot enjoy the Texas Law regarding your receiving POA documents. It is your decision to say you do not want the numerous items Texas says your seller's POA is by law required to give to you.
If it is just signed by the seller, yes, these things are usually not signed with all parties in the room at the same time. You see there is a large area for the sellers to sign and, beside it, a large area for the buyers to sign. It's is not sellers sign OR buyers sign. It's both.
So the seller signed first. You are next.
There are a lot of things that are by law to be in that packet from the POA in order to protect you. In the interest of time, these are the items:
Your Realtor told you these things have to be delivered by the 10th day by law, right?
And, by law, if it's not delivered, a court can direct the POA to do so or there can be a judgment against the POA for up to $500 and court costs, etc. etc.
Here is the Texas Statute, about half way down this page at Sec. 207.004 Owner's Remedies for Failure by POA....
Scratch out mark indicating 4, and x the one giving you period of time to read and have option of terminating. Then send back to seller to initial change.
I like the house that's why. And listing agent said they already have multiple offers.
Quote:
Originally Posted by Rakin
So why would you accept this? Usually HOA Docs are wanted by the Buyer and provided by the seller.
Do you have an agent and can they not handle this simple matter ?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
