An addendum to a purchase agreement is a document attached and made part of the original purchase agreement contract. It includes all the conditions, covenants, and restrictions.
The addendum also awards buyers time to review all the rules of the condominium association. Should a buyer realize that they cannot abide by the given regulations such as no-pet rules, fees, or noise policies, they can pull out of their purchase agreement without losing their deposit the allocated period of days.
Having such an important role in purchasing and selling condominiums, it’s essential to understand a well-written efficient addendum for a purchase agreement. The following is a guide on how to write an articulate condominium association addendum for a purchase agreement.
Writing the Agreement (What is Included)
It is impossible to have a uniform addendum for condominium associations since each association will have its different rules and guidelines. However, the following are key elements that an effective addendum for a purchase agreement should include:
When writing a condominium association addendum for a purchase agreement, it should begin with a brief and precise opening statement. The opening statement directly outlines the parties in the contract and the details of the condominium in question.
The following are the necessities for the opening section:
- The date of the purchase agreement
- The Unit number of the condominium
- The address of the condominium, including the street and city
- The buyer’s full name
- The seller’s full name
- A list of all the condominium documentation that the seller will provide. (Declaration, rules, regulations, and bylaws of the condominium association, etc.)
- The association fees for the condominium and what they cover
The next segment of a Condominium association addendum for a purchase agreement is the compliance section. This section includes all the buyers and their fellow occupants’ conditions while residing in the condominium. It should indicate the date on which the seller will provide the documents listed in the buyer’s opening statement to review.
It may also be highlighted whether the seller will provide these documents at their own cost or not.
A Condominium association addendum for a purchase agreement is viable for a few days after its issue. Therefore, it should include how long the buyer has to review all the documents. It should also state the amount for condominium association fees and the payment interval requirement, including a list of all the services to which the allocated fees will cater.
Finally, it should have a segment for both parties’ signatures: the seller and buyer. The agreement’s signature is the most important segment since it officiates both parties’ compliance to the contents of the addendum.
How to Use the Agreement
When using an addendum, have in mind that the document’s purpose is to supplement the original purchase agreement. Therefore, sellers should begin by reviewing their purchase agreement: the review should precede what the separate addendum should contain.
On the other hand, upon receiving an addendum, a buyer should review all the terms and have a checklist of the matters they prioritize most when choosing a residence.
It is important to note that the buyers also have the option to request an alteration, which a seller may decline or agree to. Once both parties agree, they may then proceed to officiate the addendum by signing.
Condominium association documentation
Every condominium association has documents handed to potential buyers to review before purchasing a condominium in the association. The documents may include though not limited to; Declaration, rules, regulations, and bylaws of the condominium association. Where required by law, some associations will also issue a disclosure statement.
All of these have been described below;
A condominium declaration is a document that establishes the existence of a condominium once filed with the appropriate public official; in their state or county—the document outlines who owns the units their percentage interest. A condominium declaration contains the maintenance requirements, restrictions, and any common area rights. A condominium declaration aims to create and establish the association and divides the airspace used into ownership layers.
Condominium associations rules and regulations
The rules and regulations document offers a guideline for the condominium owners and their guests to adhere to.
The following are examples of specific regulations included in this document:
- Parking guidelines and rules
- Pet quantity and size limits
- Noise complaint policies
- Holiday decoration standards.
- Requirements for satellite dish installation.
Violation of bylaws, regulations and rules
Once a buyer signs a condominium association addendum to the purchase agreement, they have agreed to abide by all the rules and regulations set out in the addendums. Clauses on violations preserve the condominium association’s right to take action against an owner in the manner that the association’s board fits deem.
Free Agreement Templates
The precise nature of a condominium association addendum to a purchase agreement should be a very comprehensive document. Leaving out a vital clause may lead to future legal battles. Our team has prepared templates that are a great starting point for a good condominium association addendum to the purchase agreement.
Frequently Asked Questions
Does an addendum supersede a purchase contract?
An addendum will supersede the portion of the purchase agreement contract that it addresses. However, an addendum and purchase contract should supplement each other rather than offering conflicting notions.
Are real estate agents required to disclose the bylaws of a Condominium Association?
Real estate agents are legally obligated to disclose all the bylaws of a condominium association. The obligation extends to both the sellers and their representatives, the agents
Does an addendum to a contract have to be signed?
An addendum to a contract is only legally enforceable when both parties involved have attested; they fully understand and agree to the outlined terms through signing. All the parties that signed the original purchase contract must therefore sign the addendum too.
A Condominium Association Addendum to Purchase Agreement is an efficient way of updating a purchase agreement’s terms and conditions. It also provides a buyer with a grace period to opt-out of the initial sale should they disapprove of the condominium’s market conditions, services, or fees. When drafted properly, it is an excellent avenue for sellers and buyers to settle on any future disagreements. Writing a perfect addendum to a condominium association’s purchase agreement can be an easy task, provided you include all the significant parts while maintaining the official concise tone and nature of the document.