Why use an HOA addendum for a condo sale?
April 17, 2017 – Question: I'm representing a buyer in the purchase of a condominium. The neighborhood consists of both single-family homes and condos. In addition to the condominium addendum, the listing agent is requiring my buyer to sign a homeowner's association addendum. I don't understand why if my buyer is acquiring a condo – not one of the single-family homes. Any ideas? – Ricky Realtor
Dear Ricky: While I can't answer specifically why the listing agent is asking for the HOA addendum to be signed, the property may be subject to both condominium and homeowner's association oversight.
Sometimes, in cases like this, a homeowner's association is referred to as a master association. Since it's possible for a property to be subject to more than one type of association concurrently, a listing agent may want to verify association status with the property owner or association management when taking the listing.
If a condo falls under both types of associations, the best practice is for sellers to use both addenda in their contract.
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