- Before April 1, 2021, Paragraph D of the Addendum required the BUYER to pay deposits for reserves/working capital required by the Association.
- The revised Addendum, however, removes that paragraph entirely, and combines it with Paragraph C.
- 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.
- Since the contract always governs, we cannot collect the reserves/working capital even when the Resale Certificate specifically says that.
- 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
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