HOAs Addendum. What is the best strategy for the buyer?

Do not accept an addendum with 4 checked. This is only to be used if the buyer either worked for the HOA/POA or in moving within the neighborhood (or section, depending). If a seller and their agent have performed the right steps to list, they should already be in possession of the resale cert and the docs. Any option from 1-w is acceptable, but as a buyer, you should push foe either 1 or 3. 1 would be if the docs/cert need to be obtained and 3 is if they’re in possession (BOTH) ALREADY. docs are generally available online, no bigs. So, even if you get pushed into signing with #4 checked (please don’t) your lender will likely still need a resale certificate. Quick note: with option 1, you’re basically receiving a free option period extension, since it does take time to get the info needed. The form states that you can term and get your earnest back within 3 days of receiving. It does not say due to info in the docs. So, if you receive the into, say, 22 days in, you really will have a 25 day option.

Sellers/agents take note that the docs and the cert can be amended for up to 180 days after issuance, so if you’ve done right and obtained prior to listing, then you may simply need an update to them if it takes a second to sell. If you want tight terms, do the legwork on this one.

Great info. I typically select not needed if buyers opt for that but select the clause that if title or financing required it then seller was responsible. I'm learning more about that so thanks again.

I check Box 3, nothing needed. You can print from the HOA website. I then put the transfer fee published in the MLS as all the buyer will pay. Reseal certificate, etc to be paid by the owner. On a Condo I want to know assets, owners living on site vs. rentals, if any assessments due or voted to be done and still on the books, repairs needed but not done by the association. If said repairs not done due to lack of funds for deductibles or no sssets. I do a ratio of funds collected monthly and monies needed.

The best strategy for the buyer is to be able to make the most informed decision possible. The dynamics of the transaction may dictate which boxes to check and who pays what. Your question refers to a "strategy" therefore I assume your competing against other buyers. In a competitive "bidding war" making an issue over the HOA addendum is likely not the best strategy when trying to win the favor of a seller. Placing the burden on the seller to provide within a certain time frame is really something the agent may be able to easily accomplish. Typically the seller pays for the COC as is their responsibility as the owner to be in compliance. However in competing scenarios if buyer offers to pay it sweetens the deal for the seller. Additionally I wouldn't ask for them to provide docs, I would offer to pay for the transfer fees as well.

If it is a non competing situation typically seller is not required to provide bylaws, buyer pays for transfer and seller pays for COC.

If you're a Buyer, get them! You could pay for them or the Seller could pay...but get them!

The mandatory homeowners association addendum covers many topics and just one is getting copies of the deed restrictions. Of course, this is important for a Buyer to understand the rules of the community. When purchasing in a community managed by an HOA, they agree to follow all of the rules. Best to know those rules before you purchase!

Also included in these documents is the resale certificate. This tells a Buyer what the dues are per year, if there are any special assessments and if the current homeowner (Seller) is behind in any way. It also discloses if there are any lawsuits against the HOA which your Buyer would be part of if they own a home there.

Many Buyers come from communities that are governed by city or county zoning laws/restrictions. Half of the "Houston" population lives outside any city limits and so the neighborhoods need to set up rules. Otherwise, they would be unrestricted and a homeowner could do whatever they want. The idea is an HOA helps maintain values by enforcing rules everyone agrees to, build and maintain neighborhood amenities and provide a central point for homeowners to discuss issues/solve problems. Try to review all of this information before you get too deep into the process.

Mark McNitt
832-567-4357
MarkKnowsHouston.com
Bernstein Realty

The transfer fees are now a revenue center for a lot of Property Managers and HOAs. I would be sure to have my Realtor investigate what the transfer fee is before putting down any amount on the contract. Some fees would be about $250, but a few can run all the way up in the $600 range. The deed and covenant restrictions are usually available online and are free to download. Nevertheless, a resale certificate usually has an "expiration date" that needs a new certificate with any new contract/sale.

It is up to your buyer as to which box in Section A to check. I am finding that most of the information is now online, so often a buyer will opt to check #4. In regards to the other fees, they are necessary/required if your client wants to close on the home. In paragraph C I will often have the buyer pay the full transfer fee or have an amount so it splits the fee with the seller. In paragraph E I will try to have the seller pay for this portion. The advantage of this is "if" the contract does not go through most times the resale certificate can be used for the next contract by the seller if it is within certain time constraints and purchased by them. The best strategy is what works best for your buyer, and what will help them achieve an accepted offer and a smooth closing.