Common interest development (rcid)


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Common interest development (rcid)

  1. 1. PRDS® COMMON INTEREST DEVELOPMENT (“CID”) ADDENDUM Revision Date 5/07 EQUAL HOUSING OPPORTUNITY www.prdsforms.comThis Addendum (“Addendum”) is hereby made part of the Real Estate Purchase Contract (“Contract”) dated ______________, 1/1/2013 Buyer 1 Buyer 2 ### Property Addressmade by ______________________________________ (“Buyer”) relating to ______________________________________,City of __________________________________________, County of ______________________________, CA (“Property”): City Santa Clara 1. REQUEST FOR DOCUMENTS: Upon Acceptance, Seller shall submit to the Homeowner’s Association (“HOA”) a completed PRDS Request for Homeowner’s Association Documents form. The HOA may charge Seller for providing this information and documentation. 2. DOCUMENTATION: Within twelve or __________ days of Acceptance, Seller shall provide to Buyer a copy of the PRDS Request for Homeowner’s Association Documents form completed by the HOA. NOTE: Civil Code § 1368 requires the HOA to provide to Seller, within ten days from receipt of request therefor, specified basic documentation and information relating to the subject common interest development. 3. HOA TRANSFER AND MOVE-IN FEES: Unless otherwise agreed in writing, HOA transfer and move-in fees, if any, shall be paid by the Buyer. 4. ADVISORY AND DISCLOSURE: By signature below, Buyer and Seller acknowledge the following: A. Buyer’s receipt and careful review of all HOA documents is extremely important. Not only is a comprehensive and reliable analysis of HOA documents (especially those pertaining to financial strength and reserves) beyond the expertise of most buyers, many HOAs fail to create, maintain and make available all documents required by law. B. Buyer is advised and encouraged to engage an experienced condominium/HOA management consultant, accountant or other qualified professional to perform and undertake the following tasks (collectively “HOA document review)”: 1) review, examine, analyze, evaluate, assess, investigate and interpret all HOA documents including, without limitation, CC&Rs, reports, minutes, financial records and data, budgets and reserve studies, and to 2) advise and counsel Buyer regarding the financial soundness of the HOA, regarding the completeness and adequacy of HOA documents that have been provided and regarding the nature and level of risk to Buyer of closing escrow with incomplete or insufficient HOA information. Buyer is advised that the Agents are not qualified to perform, and in fact will not be undertaking, the aforementioned HOA document review. C. Seller understands that the HOA’s failure to provide a completed PRDS Request for Homeowner’s Association Documents form, including the required documentation, does not relieve Seller of Seller’s obligation to provide these disclosures. D. Failure of the HOA to maintain adequate levels of financial reserves for maintenance, repair and replacement of major components for the common area may reduce the value, desirability or marketability of the Property, and may result in significant increase in dues, fees or special assessments. E. Buyer understands that contractual repairs or those repairs recommended by pest control and/or other inspections may be subject to the approval of, and limited by, the HOA. If the HOA prevents Seller from completing such repairs, then Buyer’s sole remedy shall be to terminate this Contract. F. Buyer acknowledges a legal duty under California law (including Civil Code § 2079.5) to protect Buyer’s own interest and should consult with accounting, legal, or other professionals with Common Interest Development expertise prior to removal of this contingency. Buyer understands that removal of the HOA Documentation contingency means that the Buyer has: 1) read, understood and approved all the information and documentation provided by the Seller regarding the HOA. As to any requested documentation or information not so provided, Buyer has investigated, to Buyer’s satisfaction, the ramifications and risks involved in proceeding without such information and such documentation; and 2) elected to proceed with the transaction even if all documentation was not received, and has given up Buyer’s legal right to cancel the Contract based on a disapproval thereof. 5. BUYER’S CONTINGENCY: This Contract is contingent upon Buyer’s approval of HOA documentation. Within five or __________ days of receipt of Seller’s HOA documentation (even if incomplete), Buyer shall provide to Seller one of the following: A. A written contingency removal pertaining to the HOA documentation; B. A demand for further information/documentation. Seller shall provide such information/documentation (and/or notify Buyer in writing as to its unavailability) within two or __________ days after receiving said demand. Buyer shall, upon receipt of additional information/documentation or notice of its unavailability, have three or __________ days therefrom to remove the contingency or cancel this Contract; or C. A written notice of cancellation upon Buyer’s disapproval of the HOA documentation.Date: ___________________________________________ Date: _____________________________________________Buyer: ___________________________________________ Seller: ____________________________________________Buyer: ___________________________________________ Seller: ____________________________________________Copyright© 2007 Advanced Real Estate Solutions, Inc. Form RCID Revised 5/07