Arizona's new H.O.A. Condominium/Planned Community Addendum

By
Real Estate Agent with Good Company Real Estate License # SA577557000

Arizona Realtors, are you ready for the new

H.O.A. Condominium/Planned Community Addendum?

 

Home For Sale in Chandler

Beginning February 2, 2105 Arizona will have a new/revised HOA Addendum that will be required to be completed for any transaction that involves a homeowners association. The old HOA Addendum was previously required to be completed and submitted by the buyer. The buyers were indicating which party pays for which HOA related fee when they completed the old HOA Addendum (at the time of submitting their offer to the seller), without any knowledge of the HOA, or the fees associated with the HOA.

 

This new HOA Addendum will be initiated by the seller at the time of listing their home. The homeowner will be responsible to provide information on the HOA, and the fees payable upon close of escrow, at that time. The intent of this new HOA Addendum (and process) is to provide the information to enable the buyer the ability to make an informed decision regarding which party will pay which of the HOA related fees in a transaction.

 

Chandler NeighborhoodThis will be a complete change in the process for listing agents as well as buyer agents. The listing agent should now include this new HOA Addendum as part of the forms they require the seller to complete, when completing the listing agreement paperwork. In addition, it is suggested that the listing agent upload this new HOA Addendum into the MLS (if available), or deliver the form to any prospective buyers upon their request. Buyers agents should print this new HOA Addendum from the MLS, or request this form from the listing agent, and have their buyer complete the form and submit it as part of their purchase offer.

 

Click on this new H.O.A. Condominium/Planned Community Addendum link to see what the new form will look like.

 

The new HOA Addendum is comprised of four parts:

 

Part 1 – Page One

This part of the HOA Addendum requires the seller to disclose information on the association(s) that govern the property, as well as the fees charged by the association(s) upon close of escrow.

 

Part 2 – Page Two

This part of the HOA Addendum identifies the legal obligations imposed upon the parties, including information that must be provided to the buyer.

 

Part 3 – Top half of Page Three (Lines 69 to 83)

This part of the HOA Addendum is to be completed by the buyer. After reviewing the HOA fees disclosed by the seller on page one, the buyer completes this section to establish which party will pay for the related HOA fees. The buyer(s) will then sign on line 100.

 

Part 4 – Line 103 of Page Three

This final part of the HOA Addendum is basically a signature line where the seller can accept the buyer’s proposal.

 

This new HOA Addendum, and process, is intended to disclose all HOA related fees up front, and establish which party will be responsible for paying those fees, in order to avoid any last minute surprises at closing that may place the transaction in jeopardy.

 

Again, this new HOA Addendum is scheduled to go in effect February 2, 2015. Since this is a significant change to the previous HOA Addendum process, it is important that all agents are aware of the changes. Please help spread the word by sharing this information about Arizona's new H.O.A. Condominium/Planned Community Addendum.

Posted by

         Contact Troy Erickson, Realtor®, Good Company Real Estate

                                Licensed Residential Realtor® in Arizona at 602-295-6807

                  for Phoenix, Chandler, Ahwatukee, Tempe, and Gilbert, Arizona Real Estate.

 

Check out our website for all Arizona Real Estate and Homes For Sale in subdivisions like Sun Lakes, Ocotillo, Lakewood, Mountain Park Ranch, Pepperwood, Circle G Ranches, and many others throughout the East Valley.

 

"Real Estate is more than just about a job for me. It is about making a difference in the lives of others. I help people just like you Buy, Sell, and Invest in East Valley Arizona Real Estate!"

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This post is for informational purposes only and should not be construed as legal advice. If you desire specific legal or tax advice, please consult the appropriate professional. The opinions expressed here represent my own and not those of my employer. Troy Erickson will not be held liable for any errors, ommissions, accuracy, validity, currentness, suitability, completeness; or any losses, injuries or damages arising from its display or use.

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Show All Comments
Ambassador
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Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

Good morning, Troy.   I love this!  I wish we had something similar in CT

Jan 25, 2015 09:10 PM #19
Rainmaker
849,035
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Dagny - Hopefully it clarifies which party is to pay for what portion of the HOA fees a little better than the old addendum.

Jan 26, 2015 02:44 AM #20
Ambassador
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Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

This makes much more sense than what the law was before, Troy.  That really put a burden on a buyer.

Jan 26, 2015 03:01 AM #21
Rainmaker
849,035
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Suzanne - Yes, it crtainly makes more sense. Amazing they hadn't figured it out before now.

Jan 26, 2015 04:06 AM #22
Rainmaker
986,178
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

For the name in Chandler Ahwahtukee, AZ Real Estate try (602) 295-6807, today, for Troy Erickson with Diverse Solutions.

Jan 26, 2015 05:44 AM #23
Rainmaker
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Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Will - Thanks for the kind words, and thanks for stopping by.

Jan 26, 2015 06:09 AM #24
Rainmaker
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Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

This makes a lot of sense and I can see that other regions will probably implement something like this.

Jan 26, 2015 05:08 PM #25
Rainmaker
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Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Georgie - Yes, the new/revised HOA Addendum makes a lot more sense than the old one for sure. If other regions do not already have HOA Addendum's, this would be something good to implement.

Jan 26, 2015 05:14 PM #26
Rainmaker
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Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

Troy

Good explanation of the changing of an important form regarding HOAs. We just had a huge revision to our purchase contract last October. Now 10 pages, up from 8, cheers cvc

Jan 27, 2015 05:26 AM #27
Rainmaker
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Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Curtis - It seems like our contracts are just going to get larger and larger as time goes by.

Jan 27, 2015 12:53 PM #28
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Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Troy Erickson 

Sounds like this form makes so much more sense and clarifies waht is to be done and by whom. No doubt there have been some issues legally that have prompted this. Happens in CA all the time

Jeff

Jan 29, 2015 03:26 AM #29
Rainmaker
849,035
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Jeff - I am sure that there have been some legal issues with the old form that prompted this change. If there were no issues, it probably would never have changed, even though it didn't make sense.

Jan 29, 2015 04:19 AM #30
Rainmaker
1,267,934
Alan Kirkpatrick
Austin Texas Homes - Round Rock, TX
Alan in Austin

Troy;

Nice post, people living in HOA communities need to stay involved. 

Feb 07, 2015 04:17 AM #31
Rainmaker
849,035
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Alan - It's important that everyone is made aware of the changes so there will be fewer issues moving forward.

Feb 07, 2015 06:10 AM #32
Rainmaker
3,860,462
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hi Troy -- this seems to make a lot more sense than the previous addendum.  It's important  that those who practice in Arizona understand the forms that should be used and can explain them to their clients.   It eliminates so much of the confusion in a real estate transaction.

Feb 09, 2015 11:16 PM #33
Rainmaker
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Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Michael - Well said. I think this change is definitely for the better.

Feb 10, 2015 02:29 AM #34
Rainmaker
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Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

Hi Troy,

Wow! Some paperwork that New Jersey does NOT require! Seems like a smart move!

Feb 19, 2015 11:27 AM #35
Rainmaker
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Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Wayne and Jean - It is paperwork that makes a lot of sense, and I am glad they finally figured out who should complete which portion between the buyer and seller.

Mar 12, 2015 05:01 PM #36
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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, Troy...I think the addendum is a great idea. We address who pays what in our state contract. 

Nov 16, 2015 04:20 AM #37
Rainmaker
849,035
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Debbie - We have always had this addendum, because not all properties have HOA's, but the recent changes have really helped clarify things in regards to how much certain fees are, and who pays for what.

Nov 16, 2015 04:45 AM #38
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