AZ HOA Addendum October 2022

Hi, this is Sheri Spierig, your Arizona REALTOR®. Let's talk about the homeowners association addendum. When a seller decides to sell their property, if that property is located in a homeowners association, we also have the seller fill out the HOA addendum. This is a three-page document. On the first page, the seller is going to fill out the information as to the name of the contact information, and then if there's a property manager. Sometimes the homeowners manage it, sometimes there's a separate property management company. They will also give us that contact information, what the amount of dues are, and how often they're paid. In certain communities, you'll also have additional association fees. So you might have your main homeowners association, then you may have a master association. It depends on the community and also the amenities. In this section here, we would list if the community in your HOA fees included trash, sewer, and that sort of thing. So we'll list those separately down here if that's included in your HOA fee. As we move through the page one, you will notice sometimes there are transfer fees, capital improvement fees, and then there'll be what the association requires the escrow company to collect at closing for prepaids. Normally that is two months, or in the case of a semi-annual payment, they may collect the whole semi-annual fee. The disclosure is paid by the seller. That amount is here. And then in the other fees, sometimes we have a separate fee on communities, which is like a community enhancement fee that's an additional amount that would be separate down here. The seller will sign and date this. Then the second page gives you the information as to what you're going to be provided. The homeowners association will then reach out to the buyer and give them a copy of the bylaws, CCNRs, and everything associated to the community so that you have your full disclosure as to the health and financing of the association and any other pertinent information that is required for them to give you regarding their association. Page three of this document is filled out by the buyer. In that case, we would put the buyer's name, the seller's information as far as the seller's name and address will already be in this document for you, and then how the transfer fee and capital improvement fees will be paid. These are a negotiated fee. They can be paid for by the seller or the buyer, or they can be split. I've seen all three situations. The nice thing with our updated document is it gives us line 75, which is any additional fees not disclosed on page one and payable upon close of escrow shall be paid by either the buyer, seller, or other, which means it could be split. This is a nice addition to this document as previously, if something was not disclosed on the front page but was owed at closing, then we had to go back and renegotiate between the buyer and seller. Now it's already on this document as to who would pay any undisclosed fees. Prepaid association fees are always paid by the buyer. The seller is going to pay that disclosure fee, which gives the buyer all of the information on the association. The seller is going to, the buyer will sign this form, and then the seller will sign with their documents. One thing to know is if there's something in this document that the buyer asked for that the seller does not want to pay, we can renegotiate that in a counter situation prior to accepting their contract. So we can address anything that you don't like on this document, even though you sign it, we can renegotiate that through a counter or an addendum prior to accepting their contract. And that is our homeowner's association addendum.