Home Buying Tip: HOA Documents and Contingency Periods

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Submitted by paramount on July 21, 2011 - 8:52pm

I'm not a lawyer, but the following is based on my experience, understanding and research.

Most house sales in California generally stipulate a 17 day contingency period. After that 17 day period as a buyer you will likely be asked to sign a contingency removal form.

If you are buying a house/condo in a HOA, it is very possible that you have NOT received the HOA and/or CC&R docs within that 17 day contingency period.

Make sure that the HOA doc contingency is not part of the contingency removal.

However, if you sign the contingency removal (including the HOA doc contingency) even though you have not received the HOA docs, you still have 3 days to review the HOA docs even outside of the 17 day contingency period.

If you are using a buyers agent, they should advise you to reserve the HOA doc contingency if you have not received the docs within the 17 day contingency period. Failure to do so is a breech of their fiduciary duty in my judgement.

California real estate law provides that if a homebuyer is provided with new, material disclosures at any time prior to close of escrow, they are given the right to cancel the agreement for three business days following their receipt of the new disclosure.