4 substantive changes TREC made to HOA addendum
On May 7, the Texas Real Estate Commission approved several changes to the Addendum for Property Subject to Mandatory Membership in a Property Owners Association (TREC 36-7, TAR 1922). Here are four of the more substantive ones:
- In Paragraph A, the form now reflects the recent statutory change that permits a buyer to obtain a resale certificate directly from a property owners association.
- Also in Paragraph A, the buyer’s option period to terminate the contract after receiving the subdivision information has been reduced from seven days to three days.
- New Paragraph E allows the seller to authorize the property owners association to release information to the buyer, so that the buyer can order the information directly from the property owners association.
- Language has been changed to make clear that even if a buyer and seller don’t want subdivision information from a property owners association, a title company is authorized to order it. And the title company won’t order the information until it receives payment from the party obligated to pay for the information under the contract. That’s to ensure closings aren’t held up while the title company waits for payment.
You can download a blank copy of the revised form and begin using it now. Use of the revised form will be mandatory starting July 1, and zipForm will update its library no later than July 1.