Chapter 6 Flashcards
Survey in condominium unit
This paragraph is left out of the Residential Condominium Contract (Resale), because the buyer is receiving what is commonly called “from paint to paint, and floor to ceiling”. Since the exterior of the condominium is not relevant to the sale, the survey of the property is not relevant.
Title notice in condominium unit
MEMBERSHIP IN PROPERTY OWNERS ASSOCIATION - this is not on the Residential Condominium Contract (Resale), since there is not a property owners association of the type that would be in most subdivision developments.
PUBLIC IMPROVEMENT DISTRICTS - Public Improvement Districts is not apart of the Residential Condominium Contract (Resale).
SETTLEMENT AND OTHER EXPENSES in condo
1- A.3 deals with the handling of the association fees.
2- A.4 deals with requiring the buyer to pay for any deposits mandated by the Association.
CASUALTY LOSS in condo paragraph
Since there is common property that could be damaged by a natural catastrophe prior to the closing, the contract needs to deal with the buyer’s options at that point.
Addendum for reservation of oil, gas and mineral in CONDO
it is not required because they have possession in AIR SPACE not the subsurface./
Subject to mandatory membership ( addendum) condo
condominium association replaces the property owner association
Addendum for release of the liability of assumed loan and restoration of the seller VA entitlement in Condo ( agreement of parties)
Not in one to 4 family residential contract ( RESALE). it is not listed in the agreement of parties paragraph of the residential contract.
Paragraph B Cando is important !
By Laws , declaration and rules of association= “Document”, which are so important to buyer which can affect your willingness to buy and live in the property.
Condominium Resale Certificate
From The condominium owners association is called the “ CERTIFICATE”.
FEE a seller have to pay to the association to receive this information.
This certificate must be prepared no more than 3 months prior to delivery to the buyer.
why a TREC requires a Condominium Resale Certificate
To aid condominium purchasers in making informed decisions about their 1. 1. rights,
2. responsibilities and
3. risks as condominium owners
disclosing information about the financial, physical, and legal condition of the condominium. The certificate must also be accompanied by the association’s declaration, bylaws, and rules.
who fill the Condominium Resale Certificate form?
condominium owners’ association’s governing board
Paragraph A condominium resale certificate form
Declaration => condo association could require the seller to allow the association to purchase the property.
Who issues the Condo Resale Certificate?
Condo Association
information requested on the Subdivision Information, including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners’ Association:
1.The amount of special assessments
2.The capital expenditures approved over the next year
3.Unsatisfied judgments
When purchasing a condominium, a buyer should carefully read over what document, as the information in it could affect the buyer willingness to live at the property?
Association’s bylaws and rules
