A buyer in Texas is purchasing a property subject to mandatory HOA membership. The buyer receives the HOA resale certificate and discovers that the HOA has a pending special assessment of $3,000 per unit for roof repairs. Under the TREC addendum, what are the buyer's options?
Correct Answer
B) The buyer may terminate the contract within the review period after receiving the HOA documents
Under the TREC Addendum for Property Subject to Mandatory Membership in a POA, the buyer has a review period to examine the HOA documents. If the buyer finds the special assessment or other HOA obligations unacceptable, the buyer may terminate within the review period.
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Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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