Revised HOA Addendum Adds Greater Disclosure for Better Closures

It has been roughly nine months since the Arizona Association of REALTORS® (AAR) introduced a revised H.O.A. Condominium/Planned Community Addendum at the request of AAR’s Risk Management Committee to promote increased disclosure of various HOA fees paid by either the buyer or seller.

“Parties were often surprised at close of escrow by previously undisclosed HOA fees that neither the buyer nor seller had agreed to pay,” said AAR Form Workgroup Chair Holly Eslinger. “In an effort to avoid this scenario, our workgroup created a revised HOA Addendum that promotes a greater level of disclosure of the various fees payable upon close of escrow. This should allow for fewer surprises, happier clients and successful closings.”

To properly utilize the HOA Addendum, sellers are instructed to complete page one and sign on line 34. After that, the entire three-page addendum is to be uploaded to the multiple listing service or delivered to prospective buyers upon request. The reason for uploading the addendum is so that prospective buyers can easily access it and note the Fees Payable Upon Close of Escrow. With this knowledge, the buyer can make an informed decision about which fees they are agreeing to pay as part of their purchase offer.

In an effort to promote proper usage of the HOA Addendum, AAR continues to work with multiple listing services across the state to ensure that members are able to quickly and easily upload the form. For more information on the addendum and its proper usage, click here.