Big Contract Addendum Change – HOA Fees

Big Contract Addendum Change – HOA Fees

Greetings!


Now that you’ve all started to get new contracts in it is important to be aware of another change that affects CD prep – HOA fee collection!


What’s the change? Under the old form, “deposits and reserves” belonged to a separate fee category and they were paid by the buyer per contract. This meant that you separated out deposits and reserves to the buyer and then all other remaining fees were totaled and you applied Paragraph C to know how much of those fees were paid by buyer (the rest paid by seller).

OLD ADDENDUM (36-8)

With the new addendum, deposits and reserves are now affected by Paragraph C so if the new form was used you charge the resale following Paragraph A and then you tally up all remaining fees, without separating out deposits and reserves. Once you have that total figure then you apply the amount to be paid by buyer as negotiated between the parties and the remainder is paid by seller.

NEW ADDENDUM (36-9)

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