Is the TREC HOA Addendum costing Sellers more

  1. Before April 1, 2021, Paragraph D of the Addendum required the BUYER to pay deposits for reserves/working capital required by the Association.
  2. The revised Addendum, however, removes that paragraph entirely, and combines it with Paragraph C.
  3. Since the Buyer’s responsibility is now capped at the amount entered in Paragraph C, Sellers are now responsible for payments of reserves/working capital, which can be substantial.
  4. Since the contract always governs, we cannot collect the reserves/working capital even when the Resale Certificate specifically says that.
  5. Tip: Listing agents should prompt sellers to contact their HOA for information on the transfer costs, including reserves and working Capital. This ensures awareness of whether the amount specified in paragraph C will be adequate when presenting an offer