Initials Boat Slip Lease Agreement Made Easy

FAR Bar Condominium Rider - Future Home Realty form

hey so hello there we are continuing our contract classes we're going to do these now we're moving on to the comprehensive rider to the contract so we've discussed the far bar contract we have a class uploaded for each section of the far bar contract that covers majority of items and on the actual contract however that far bar contract has special situations these special situations are usually addressed by having a writer all right and that basically means it's an addendum or an addition to the actual contract the first one they go by letters it's this one's letter a and they generally do it in alphabetical order they make some adjustments when they add some things later but we're going to start with condo writer a or the writer a which is the condominium writer very critical this one this class I'm going to try and keep brief but there's a lot in here so you make sure you pay attention as we go through this can be a source of pain and consternation to agents because of the need to make sure that the buyers and sellers seller is properly disclosing and the buyers are fully aware of what living in a condominium really means and what the rules and regulations and all that would be all right let me start down here as as usual you're going to see a PDF I'm going to encourage you to print the PDF so you could have this to refer to I've highlighted and mark this up extensively but the audio is going to be helpful as well let's get right down to it obviously I'm going to kind of skip through with a seller and the buyer and the concerning the property described as you would just put the address the unit included and everything in there now critical here most of the time you're not going to have the buyer initial this you're gonna send it to the seller uninitialized to be filled in here from the seller that unless the seller has done it in advance then I'm not going to encourage the buyers to initial this to state that they have are ready to make this part of the contract however what you would normally do is include this not filled out and not initial if you're representing the buyer not and fill that and not initialed by the buyer and say to the seller and the listing agent we need this completed once it's completed then the buyers will initial it alright so let's start with that premise now second of all if you are listing a condo it is highly advised that you have the seller go through this and complete this as well as there are some things they may have to look up might have to get some information from the condominium association people who run that association to help them fill that out or get the information they need you want to be as accurate as possible inaccuracies on this are the cause of many lawsuits and so you don't the seller to obligate this remember the seller is filling this out not you write that it's their job to give you the information and you let them fill it out okay if you're listing it the best thing to do is get all this information even list it because you're gonna learn later that the buyer has a right to cancel this contract or to avoid the contract if they don't receive certain things or even and when they do receive certain things they have three days from that date to cancel the contract and that might be all the way a week before closing so until this is all buttoned up your sellers and buyers do not have a legitimate non voidable contracts you're gonna make sure you bear that in mind okay I you see here this form needs to be completed by seller prior to closing speak and leave I sell are at listing and ready for the buyer type of offer and that's why you're listening to this alright alright so now let's dig in part one con most of the condominium association approval there are times and many it is the case where the condominium association has the right to approve the buyer this goes in debt in depth into how often or how soon that needs to be done that if we go to contract then the buyer needs to go ahead and make application with the association sometimes they only meet once a month and if you just missed that monthly meeting last week then you're gonna have to wait another you know twenty-five days before the buyer can get in to be quote-unquote approved if they require a face-to-face approve process so if not a lot of times it's paying a fee and submitting documentation but all that needs to be done if you look through this all right the default of five days prior to closed for approval in five dates after effective date for the buyer from application what this says is the associations approval of buyer is or is not required again we don't know that the seller would know that if approval is required this contract its contingent on the buyer approved by the associate no later then if left blank and five days prior to closing that means that they have the right to do that within five days after the effective date the seller shall initiate the approval process with the associate and the buyer will apply it for such approval buyer and seller shall sign and deliver all document they're gonna work together all right to get this buyer approved if the buyers not approved the contract shall terminate your empire gets their deposit back all right but you need to know this on the front side because these are things that people are scrambling around at the very end of a contract trying to get addressed when the reality is it should have been done on the front side okay so you know it if you're listening to property know if approval is required so you can tell it to properly tell the buyers hey look approvals required me to get on this and we getting it going and then if you're the buyer then hey you have to ask the seller and we need answers quickly as whether or not by our approval is required next section is right of first refusal this can be a little confusing but not many but but some condominiums have a right of first refusal that means that if a unit in the condo goes for sale that the Association or its members and it kind of delineates between the two of them have a right to buy it first before the next buyer comes in meaning they can match the offer and buy it not often does it occur all right but you need to know if that is in their condominium rules and regulations and the the rights the Articles of Incorporation under the under the condo association but just know that if it does happen and the buyer gets pushed out if you will by the Association and why would they do that I don't know there could be a very number of reasons maybe they're trying to gather them they're trying to control more of the properties or who knows what the Association would have to do that but if it exists it exists there's not a little what you can do to argue with it but do note that if they do exercise their right under this if the Association exercises the right to push the buyer out and buy it themselves then the listing agent and therefore the buyer's agent should get their full commission because a transfer did occur okay so make sure you know to that three fees and assessments this is where the seller needs to confirm this is paragraph three where the seller needs to confirm the current fees paid to them paid by them to the condo association including any standard monthly obligations because sometimes there are multiple associations or whatever or maybe there's a separate HOA which we'll talk about here in a minute all right but currently this is how the seller is going to represent now again if this was blank or why would you fill this in if you represented a buyer and have a buyer initially you wouldn't that's why you send it to them and the seller needs to provide you this information and once the buyer has a chance to review it and they can do it again remember to mark whether it's two hundred and eighty five dollars a month or if it's seven hundred and forty seven dollars a quarter or if it's paid semiannual annually however that's done again remember again that the seller is the one filling this out okay now here's a big one okay next on the first paragraph on pear on page two all right at all annual assessments levied by the Association and rent on race so sometimes by the way there are monthly amounts and annual amounts like maybe they pay to eighty five monthly plus another seven hundred dollars annually that old stuff that has to be disclosed so the buyer is aware okay all annual assessments levied and rent on recreational so finish shall be made current by seller at closing and if they've pre paid any items just like if they prepaid insurance or some things like that then there will be a proration at closing here paragraph subparagraph B fees shell or seller shall at closing pay all Fine's imposed against the unit by the economy association as of closing day again any fees of the association's charge to provide information about the property assessments at fee so the seller is obligated to do know that that's in there right if you are representing the buyer know that it's in there so you can represent your client properly if you're representing the seller make to make them aware that they know that that is in there okay all right I just put a quick note here this is um applies to this in highlighting in blue if property is part of a homeowner's association in addition to an association then Rider B which is the homeowners association rider that we're gonna is also have a class on not part of this but later is going to be mandated to be used so make sure if there's a homeowner's association and a condo association that you're using both alright now paragraph subparagraph C alright I'm gonna make a little note out here this is a loaded section of the cause of many potential misunderstandings that lead to lawsuits please listen to the audio portion of this class and if you have a seller buyer that has questions on what and how to disclose then encourage them to seek legal counsel regarding this issue once again too much to write here so listen to the audio so we're gonna go through it all right the seller represents I'm gonna start we're just going to read it carefully so it represents that the seller is not aware of any special or other assessment that has been levied by the association or listen to this that has been an item on the agenda or reported in the minutes of the association within the 12 months prior to the effective date most sellers aren't even paying attention they don't go to their association meetings they don't read the documents that come to them they might even be in the area and they're only living at 3 months out of the year I get all that however if someone can come back later and prove that ain't item was brought up they we might need to be reroofing all the roofs on these condos and it was on the agenda all right and and or reported in the minutes with any time in the 12 months prior to the effective date then the seller better disclose that hey there are no special assessments now or there is a special assessments because they're planning on paving let's just go with this they're they're planning on painting the ah repaving the street to the parking lots all right in the next four months right they've already approved it it's all set there is what they've decided to do is charge each person an extra two hundred and fifty dollars a month for the next four months and it's gets going on okay just keep that in the back of our mind let's say on that contract all right so you're aware of that boom but in addition to that maybe about six months ago there was an item on the agenda for the for the monthly meeting that said hey look we might need to reroute some of these buildings and so it's it's potentially there and yet you gotta get it your seller better note that here all right they don't have to get I can't tell you how much it is or if it's even have been approved or anything else it hasn't been but this is another disclosures like when you're disclosing things on the sellers disclosure your seller needs to go back through and make sure they're they're comfortable filling this out again the seller fills it out not you okay now if special assessments levied or pending exist as of the effective date so for instance our parking lot repaving thing all right let's say we've only made the sellers only made one payment of the $250 so there's a remaining $750 over the next three months are disclosed above by seller and may be paid in installments so they are okay by the way yes we know that there's a paving the seller filled that out all right okay then what's gonna happen get read this carefully sorry all right buyer or seller okay if left blinked in the buyer so don't want to leave it blank unless that's what you mean but I encourage you to check it all right the buyer all right shall pay installments do after the closing date if the seller is checked let's so in our case let's say that we're one month into a four month assessment and sometimes they're much longer than this all right but the sellers made is250 payment he's gonna make the next one because it's due February 23rd and the closings going to occur on March 1st right well then we know going forward for March and April those two remaining payments if we check buyer here then the buyer would be responsible for that 250 and 250 but it's fully disclosed to them if we decided that seller was gonna pay that then this contract says that the seller at closing will pay for all of it so pay the remaining $500 that's left that closing so make sure you're aware of that all right again dig through this okay look at this paragraph subparagraph 3 4 5 & 6 yes special assessments levied or pending exist and have not been disclosed by seller then seller if they get found out the seller will pay such assessments in full at time of closing so it behooves your seller to disclose them and figure out who's gonna pay for what okay if after the effective date the association imposes so let's say we go to contract today but two weeks from now the Association imposes a special assessment for improvements all right which was not on the books as of the effective date then the seller shall pay all the amounts due before the closing date and the buyer shall pay amounts to do after the closing date all right well your buyer needs to start paying attention maybe start going to the Association meetings even if they're not a member yet okay a special assessment shall be deemed levy for purposes of this paragraph on the date when the assessment has been approved as required for enforcement okay so when they actually have slammed the gavel right and said okay the special assessment so even if they haven't slammed the gavel and they've been talking about it you need to disclose it up here but it's not technically imposed or levied until the gavel has come down and then once that comes down then if it hasn't come to closing date the seller will be responsible for anything prior to closing and the buyer takes care of it after that or if nothing occurs till after then the buyer would be responsible association assets and liabilities including association reserve accounts shall not be prorated really nothing to worry about there that's more for the title company to worry about okay all right litigation again seller represents that sellers not aware of pinning or anticipated litigation affect the property to call a common elements except again if it's been on the record if it having been in the last 12 months starting going back up here the last 12 months having gone to in been on the agenda report in the minutes anything like that then your seller better disclose that oh yeah we heard that somebody slipped and fell around the pool and that they're now potentially suing so we need to make any buyer aware of that okay big big paragraph here paragraph three is huge and the cause like I said of many issues the key here is over over communicate right let everybody know what's going on what you're aware of and many times the sellers look at listen to this being ignorant is not satisfactory just because they didn't go to the meeting doesn't mean they don't get a copy the agenda they need to pay attention to that stuff all right sprinkler system retrofit you can research this but basically they would need to disclose whether or not because I guess there wasn't out to whether people could like to not do that and long as they've made notice of that okay so me through that paragraph four here paragraph five is very important as well because it talks about the things that the buyer has a right to review and once they have those in their hands they have three days excluding national legal holidays and weekends to review the documents and potentially cancel the contract right that's why when you represent the buyer you don't want to check in these boxes rarely are you gonna check a box here k merritt says rarely use right the buyer acknowledges the buyer hasn't been provided already alright when they're making the offer look at these it's kind of like basically i think there are four items right four or five a current copy of the Declaration of condominium number one number two articles incorporation okay number three the bylaws and rules of the Association number four a copy the most recent year in financial information and also and this is kind of like a for a and for B but it could be thought of as five frequently asked questions all right more than three days now they prior to them even executing this contract that's why it's rarely used all right if they've already been received that but that's you check that box but that's rare because most times that stuff it's not prepared in advance by the by the listing agent it should be but it's not okay more often you're going to use this that this agreement is void by the buyer alright by delivering read it written notice of the buyers intent to cancel within three days excluding Saturdays Sundays in the legal holidays after the date of execution is written by the buyer and receipt so they've received it's not from the execution date of this contract it's or this writer but the time that they've executed the writer and received those big five all right that we just referenced up here that's why I put them the same color green okay so once that once both of those things have been met it might be two weeks from now that you have all of those then the buyer has three days excluding Saturday Sunday / Louisville holidays - then void the contract all right all right any purported waiver the viability right she'll be a no effect buyer may extend the time for closing so if they don't get it to you until two days before closing then you can request an automatic extension of the closing because you can exercise your three-day right now that's first of all we don't want things up in the air so get these things these big five get them as soon as possible if you're listing one of these get these in advance so you have them ready and you can deliver them boom get written notification that they buyers have received it from the buyer's agent boom now they're three day clock starts ticking and they don't have this forever get out of contract card that they can pull when they're not there fair enough huge huge huge understand that okay all right that's this is more continued on all right about what happens and then just realize this after the buyer believes the documents and a copy the most recent year in finance okay yeah buyers right to void shell okay so once the buyer goes to closing though they've avoided their right to turn terminate the club the contract they can't come back later and say oh I'm gonna change my mind on this closing because I was never received these know it once you go to close closing you're basically waiving your right to look at those documents but they're important documents to have for all we know you your fire might be a lover of Audi vehicles right and they have three of them and it says in there that no outtie cars are allowed not that that would say them they were seeing that but I'm just saying to be weird stuff that your buyer cannot live with they need to know that on the front side so they can avoid him and move on from the contract okay paragraph six is where you're actually gonna request these documents okay and I again highly recommend that the buyer requests all right all the things specified in paragraph five which is those big five we talked about prior right and says the seller is entitled or the buyer has a right to have them and the seller is to get them at their expense sometimes sellers don't have these documents and they've got to pay their association to get them it's a seller's expense again know your contracts you can push back on that if the listing agent says no you go pay for no contract already executed here we are seller says that they're going to pay for all right if the contract does not close the buyer shall let me let me turn all the documents to the seller so they can use them for the next time and if not if they don't then the seller has a right to get reimbursed by the buyer for those things oh I lost it my kids spilled his coke on it it's all ruined whatever okay it's still the buyers responsibility to return them if it doesn't close and/or pay for them buyers receipt this date is filled in below if and only if the buyer has received them in advance if all those big five are done it's rare okay if not it usually happens after the fact and there's a we have this void ability built in then I'm gonna encourage you to have a something written in writing and it's there is no document to a formal document but a something in writing that says all parties agree buyer acknowledges that they have received all the required documents per paragraph 5 of the far bar writer on such and such date such as such time boom now the three-day clock starts ticking all right let's find just a real quick paragraph eight common elements sometimes this can be a point of contention if there are parking spaces assigned or a garage assigned or other things so like here I put in here things like a boat slip etc it's included with the sail all right make sure you have the seller and fill that out and include that inspections and repairs this just says that the far bar contract that we filled out whether it being as is or a regular contract that has repair limits applies only to the condominium unit it does not apply to the common area common area elements of the of the Association so only paragraph 11 and 12 which talks about repairs under the far board contract is is regarded they're in this government's governance form it basically says the the governance form there guess there's a chapter 7 18 all right I wouldn't worry too much about that if your buyer is really concerned about it and wants that then they can consult an attorney about hey should I ask for for this as well last word of advice remember that sellers fill this out buyers review it you make no comments on what is involved or what's included in there you can just say hey look these are the things we need to get and the seller needs to fill this out if you're listing it you let the seller fill it out if you are representing the buyer you make sure you get this information you make no indication of you know viability of these docks and all that kind of stuff you let them figure that out and or if they feel like they need to go to legal counsel to review the Association and all that stuff then it's highly advisable they do so alright I know it's kind of loaded this is longer it's already at 23 minutes longer than I usually like to go on these but this one was kind of chock-full plus it's very can be a little bit confusing so hopefully this all helps make sure you understand your contracts and your writers continue to learn guys appreciate it have a great day