Contracts
An Oregon purchase contract includes a homeowners association (HOA) disclosure addendum. The buyer has the right to review HOA documents and:
AAccept or reject HOA membership within 3 business days
BTerminate the contract within the time specified in the addendum if the documents reveal unacceptable conditions✓ Correct
CNegotiate the HOA dues as part of the purchase price
DHave the seller resign from the HOA before closing
Explanation
When a purchase contract includes an HOA disclosure contingency, the buyer receives HOA documents (CC&Rs, bylaws, financial statements) and has a review period in which to terminate the contract if the HOA's conditions are unacceptable. This is similar to other due diligence contingencies.
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Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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