Paragraph 2B(2) of the Residential Condominium Contract (Resale) (1605, TREC 30-13) details what happens if a buyer hasn’t received the condo documents—declaration, bylaws, rules of the association—when the contract is written.
It says that the seller shall deliver the documents within a certain number of days after the effective date. However, a recent change to the form clarifies that the delivery of the documents is at the seller’s expense.
The revised version of the form with this clarifying language is available now in zipForm and on ngskmc-eis.net. Use of the revised form is voluntary until May 15.
The seller only pays the delivery fees related to the documents and the buyer pays for the documents themselves from the HOA management company, correct?
I’d like to know the answer to the above question as well.
Hi Lori,
That’s a question that would be best answered by one of our Legal Hotline attorneys (800-873-9155).
I take things very literally, I would think Seller would have to pay for documents as well. In my opinion, you would need to have ownership of something to deliver it. Thoughts?
Seller should pay for all condo documents
Bring the new owners into the complex with knowledge of Declaration, Bylaws, and rules of the association.
My Toughts Only
Adriana
Did anyone even read the Contract? In this portion of the Contract the Buyer is not instructed to Buy (nor is it implied in any way) the Condo Docs. The Seller is explicitly indicated as the party that pays for the Resale Certificate. I think common sense should answer Lori’s question. But if not… then the Tar Legal Dept should get right to work on more explicit language!
As a Realtor that primarily sells condos, there are a couple of things I would like to say in this regard. Yes, it is the Seller’s responsibility & liability to pay for the condo docs & resale cert for delivery to Buyer. Having said that, it always amazes me that Buyer agents want to put some amount of money in the 12.A.(3) paragraph, giving money back to the Seller. As the Listing Broker, we will always take that, but as a Buyer’s rep I virtually never give money back to the Seller. Additionally, Paragraph 12.A.(3) is referring to “any and… Read more »
Very interesting Joe! Great information as well. I believe you answered one of my questions I had and that was how long do you give them to deliver the the HOA docs? You mention 2 weeks to receive, do you give them 14 days or extend that further?
I totally agree! Thank you for this info. I’m about to write a contract for condo and am VERY rusty!
Does the HOA or the Management receive the money charged for preparation of the Condo Resale Certificate?
Hoping for clarity on section 2B(2). Does the buyer have the right to terminate the contract even if documents were delivered on time? The wording is vague in my opinion. All other sections of the contract use specific performance (doc delivery, certificate delivery, option/earnest etc) in order to terminate. Meaning if this does or doesn’t happen then buyer can terminate with the exception of option which is the unrestricted right. However, section 2B(2) states that once the buyer receives the HOA docs they can terminate within 6 days of receipt. It does not specify if there needs to be a… Read more »
DId you ever find out the answer to your question?
Does anyone know the answer to this?
the resale certificate typically comes at a cost. Most home owner associations are managed by management companies.
12 a 3. I am unclear why this would include assessments for hoa in advance or deposited at closing to be paid by seller if amount not entered doesn’t cover.
I have a deal that buyer put in 150. At closing title has buyer paying the 150 and other fees associated with transfer over this amount paid by buyer which is okay but why would I they include first 2 months of assessments? Doesn’t seem right. Trec needs to rest write this paragraph
Any thoughts?
For sellers, I make sure that any transfer fees, advance monthly fees required by the HOA, and any reserves are included in this blank. It could add up to thousands of dollars and I don’t want my client on the hook for that amount on behalf of the buyer. It’s also good to include any cost associated with obtaining HOA docs beforehand.