Addendum for Property Subject to Mandatory Membership in a Property Owners Association — Page by Page

Top of Form — Property and Association Info

• "ADDENDUM TO CONTRACT CONCERNING THE PROPERTY AT ______" — enter the street address and city of the property Buyer is purchasing.
• "Name of Property Owners Association, (Association) and Phone Number" — enter the actual HOA/POA name and phone number. Example: Oak Ridge Property Owners Association — (281) 555-1234.
• This form is not for use with condominiums — it’s for mandatory-membership HOA/POA properties only.

Paragraph A — Subdivision Information (check only one box)

• "Subdivision Information" means: current subdivision restrictions, the Association’s bylaws and rules, and a resale certificate.
• This is the HOA package Buyer uses to learn the rules, restrictions, finances/assessments, violations, and other matters affecting the property.
• Choose A1, A2, A3, or A4 depending on what Buyer and Seller agree to — only one box should be checked.

A1 — Seller obtains and pays

• "Within ___ days after the Effective Date, Seller shall obtain, pay for, and deliver the Subdivision Information to Buyer." Example: 5 days.
• Who pays? Seller. Who obtains it? Seller.
• After Buyer receives it, Buyer may terminate within 3 days after receiving it or before closing, whichever occurs first — that 3-day period is already printed on the form; you don’t fill it in.

A2 — Buyer obtains and pays

• "Within ___ days after the Effective Date, Buyer shall obtain the Subdivision Information at Buyer’s expense." Example: 5 days.
• Who obtains them? Buyer. Who pays? Buyer.
• "Deemed to receive" — Buyer is considered to have received the Subdivision Information on the date Buyer actually receives it, OR the date written in A2, whichever is earlier. That means the number of days you write matters — Buyer can be treated as having received the documents even without actually receiving them first.
• Buyer may terminate within 3 days after receiving the Subdivision Information or before closing, whichever occurs first (this 3-day period is already printed on the form).

A3 — Buyer already received and approved it

• Check A3 when Buyer already received the Subdivision Information before signing and has approved it.
• No days blank up front — but you must check either "Buyer DOES require an updated resale certificate" or "Buyer DOES NOT require an updated resale certificate."
• If Buyer DOES require one: Seller, at Buyer’s expense, must deliver it within 10 days after receiving Buyer’s payment for it (the 10 days is already printed — you don’t fill it in).
• If Seller fails to deliver the updated resale certificate on time, Buyer may terminate the contract and earnest money is refunded to Buyer.

A4 — Buyer does not require the HOA information

• Buyer does not require delivery of the Subdivision Information under this addendum. No additional blanks.

Title company language under Paragraph A

• The title company (or its agent) can obtain the Subdivision Information for the parties ONLY after receiving the required fee from whichever party is obligated to pay it.
• Checking a box does not mean the title company fronts the cost — the responsible party (Seller under A1, Buyer under A2/A3) still has to pay.

Paragraph B — Material Changes

• Seller must promptly notify Buyer if Seller becomes aware of a material change in the Subdivision Information.
• Buyer may terminate before closing if: (1) any of the Subdivision Information provided was not true, OR (2) a material adverse change occurs before closing.
• If Buyer properly terminates under this paragraph, earnest money is refunded to Buyer.

Paragraph C — HOA transfer fees, deposits, and reserves

• "Buyer shall pay Association fees, deposits, reserves, and other charges associated with transfer of the Property not to exceed $___, and Seller shall pay any excess." Example: $500.
• If qualifying charges are $400, Buyer pays $400. If qualifying charges are $750, Buyer pays the first $500 and Seller pays the remaining $250.
• This paragraph does NOT include normal periodic HOA dues (monthly/quarterly/annual dues, prorated under Paragraph 13), and it does NOT include costs already covered by Paragraphs A and D.
• If Paragraph C conflicts with an allocation of charges stated in the Subdivision Information (like the resale certificate), Paragraph C controls.

Paragraph D — Authorization

• Seller authorizes the Association to release the Subdivision Information and any updated resale certificate to Buyer, Title Company, or a broker involved in the sale, when requested. No blank for this part.
• If Buyer does NOT require Subdivision Information or an updated resale certificate, but the Title Company still needs HOA information to close (dues status, special assessments, violations, right of first refusal waiver), the parties check who pays the Title Company for obtaining it: ☐ Buyer or ☐ Seller.

Notice to Buyer Regarding Repairs by the Association

• The Association may have sole responsibility for certain repairs to the property (e.g., common walls, roofs, exterior structures, drainage).
• If Buyer is concerned about a repair the Association is responsible for, Buyer should not sign the contract unless satisfied the Association will actually make that repair — the Seller may not have authority or an obligation to make an Association-responsibility repair.

Signatures

• Signature lines for Buyer, Buyer, Seller, and Seller — these are full signatures, not just initials.

Quick reference

At a glance

Practical example

• Buyer is purchasing 123 Oak Tree Lane in Oak Tree HOA. The parties agree Seller will order the HOA documents within 5 days and Seller will pay — that’s A1 checked with "5" filled in.
• Paragraph C says Buyer pays transfer-related Association charges up to $500. If actual charges total $800, Buyer pays $500 and Seller pays the remaining $300.
• If the title company separately needs HOA info under Paragraph D, the parties check whichever of Buyer or Seller they negotiated to pay that specific cost.