Interesting HOA condition

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  • #13551
    rashad3000
    Participant

    When I signed my contract, the builder told me that there is NO HOA in my community. On the appraisal the other day, the appraiser said there is a $524 HOA fee. My new condition is to get page 27 re-submitted, indicating the new HOA fee.

    WTF? Has anyone ever had experience with an HOA being added later? If the contract states no HOA, are you still responsible? I’m so frustrated right now.

    #13552
    ontheroadagain
    Participant

    @rashad3000, so when you were first building there was no HOA, now all of a sudden there is? Or did the builder just not give you the correct information before going into contract? That is crazy

    #13556
    rashad3000
    Participant

    Evidently, the appraiser is incompetent. He used the community that my builder is selling out of to determine that my home has an HOA fee. However, I’m building in a different community. This is disturbing. Something as simple as this, plus the fact that he did not use all of the available comps is crazy to me.

    #13558
    TTrumble
    Member

    Hello rashad300,

    I’m afraid you’re likely to have a tough time with that one…

    I just took a look at the Purchase and Sale contract and where it indicates whether there is a property owners association (page 6) it looks like “Yes” was originally checked, then it was scratched out and “No” was checked and circled.

    Of course, I’m not qualified to give legal advice, but in a situation like that with a contractual agreement, any changes need to be initialed by both parties, immediately adjacent to the changed item to acknowledge the change. There were no such initials, just yours at the bottom of the page as was on every page.

    That all having been said, you still need to challenge it and make them produce their original copy of the P&S agreement to prove that the change was made before you signed the document, then insist that you be either exempt from the HOA or the builder pay the dues for you for as long as you own the home, and get it in writing. You are going to need to play a little hardball on this one. Your only other option is to capitulate to the HOA.

    Don’t forget that NACA’s roots are as an advocacy organization, so our position is that you should fight to make the builder stand by their word in the original P&S agreement. However the final decision is of course yours.

    I hate to see you face another bump in the road, but I know you well enough by now that whichever way you decide, you’ll see it through. As always, please keep me updated.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #13559
    rashad3000
    Participant

    Hi Tim. Thanks for the response.

    Actually, I’m good. Initially, the builder made a mistake. She checked the “yes” part, then immediately changed it to “no”. I initialed the bottom of the page. NACA made a condition that I initial the change and have the builder initial the change. I initialed it on 2/6 and she initialed it on 2/7. I sent it to NACA and that condition was met.

    It wasn’t until the appraiser mistakenly put in his appraisal that there is an HOA fee in my neighborhood that this came back up with NACA. There is no HOA in my neighborhood. My builder initialed it on 2/7 and texted me to confirm today.

    #13562
    ontheroadagain
    Participant

    @rashad3000, so the appraiser did the appraisal for your new build based off the the neighborhood that the builders “model home” is located? I thought they usually appraise off of the homes next to the actual build? How long does it take to contest the appraisal?

    #13564
    TTrumble
    Member

    Hello rashad3000,

    At this point, the appraiser will need to file an addendum noting the HOA fees were added in error. The builder should be willing to cooperate, and it probably won’t be that difficult. Glad to see it won’t be such an uphill battle after all!

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #13642
    miztay2u
    Participant

    I am trying to make offer on a short sale and MC not in the office. The selling agent wants to do a doc-u sign contract. Through NACA are we not allowed to do this?

    #13651
    TTrumble
    Member

    Hello miztay2u,

    There are specific terms required in a P&S contract when going through NACA that the contract the seller wants to use may well not include. As stated in your NACA Home Buyer’s Workbook, the following items should be addressed in your P&S Agreement:

    Eliminate from your P&S Agreement:
    a. Charges or penalties for closings past a certain number of days from the executed contract (per diem)
    b. Loss of your earnest money deposit if the property does not appraise for the purchase price you agreed to
    c. Loss of your earnest money deposit if your mortgage application is denied

    Include in your P&S Agreement:
    a. Correct spelling of your name; the same way it was entered on your NACA documents or as it appears on your picture ID;
    b. Conditions requiring satisfactory NACA-approved home and pest inspector(s); this includes time to turn on utilities and undergo other evaluations or work write ups if it requires a major renovation;
    c. At least 30 days to close from the date of the executed contract;
    d. At least 45-to-60 days to close for properties requiring significant renovations, as identified on the home inspection, from the date of the executed contract;
    e. Approved NACA and lender settlement agent to provide settlement services;
    Note: when using an approved settlement agent, the participating lender pays the settlement agent’s fees and closing costs; however, if you request another settlement agent, he/she must be approved by both NACA and the lender and you are likely to incur significant additional costs.
    f. Closing at a NACA office, a process which ensures that you have the support necessary to address issues that may delay or prevent a closing as well as to answer questions about loan terms and other matters.

    Ensuring that all of these items are in the P&S agreement will protect you from a variety of potential pitfalls that can show up during the process. Additionally, while NACA will accept an electronic signature from the seller, we require you (the buyer) to physically sign the P&S agreement (aka, a “wet signature”).

    Remember that the P&S is a legally binding contract, so don’t set yourself up for a potential disaster by ignoring any of the protections that are listed above.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #38656
    suani
    Member

    I had entered into a new construction purchase & sales agreement prior to being NACA-qualified in May 2017. Now, I am NACA-qualified and the purchase price is within my affordability range. The house will not be ready until mid-October 2017, so I have a little time. I need to submit my previously signed purchase agreement to my MC for credit access; however, the agreement was Docu-Signed by both parties. All of the other mandatory conditions mentioned above are amended in the form of an addendum, with the exception of the “wet” signature. Would I need to ask the builder/seller to regenerate another purchase agreement so that I can re-sign the entire multi-page document with my “wet” signature?

    #38667
    nfreniere
    Member

    suani,

    To my recollection, all other parties may electronically sign, yours and the co-borrower’s signature and initials must be wet.

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