Commonly Owned Elements, or Property Involving Common Expens

A Highlight of Form for Commonly Owned Properties

Real estate is full of different kinds of properties some of which are used almost very frequently. Property that is used commonly involves common expenses as well. Hence, it is very important for buyers and sellers to be clear about a lot of points that are mentioned in the form for commonly owned properties and their expenses involved. This form involves various legal aspects and this is why the concerned parties are advised to consult their legal and tax experts before signing the form. Now the question is what is there in a form for commonly owned elements or property involving common expense.

The form asks for the name of the concerned property along with the date of contract between the buyer and seller. There is a point for inclusion and exclusion of facilities in the form which both the buyer and the seller have to agree too. These facilities can be parking facility, storage facility or any other commonly used facility. As per the form, the seller of the property is supposed to provide to the buyer a copy of association declarations of owner, rules and regulations, financial documents consisting of balance sheet, annual income etc. and this has to be done at the expenses of the seller and not the buyer. In return, the buyer will have to acknowledge that he or she has received all the mentioned documents from the seller. At the end, the form has to be signed by both the buyer and the seller.

Commonly Owned Elements, Or Property Involving Common Expens

Commonly Owned Elements, Or Property Involving Common Expens

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Commonly owned elements, or property involving common expenses.

THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTIES SHOULD CONSULT LEGAL AND TAX OR OTHER COUNSEL BEFORE SIGNING.
COMMON INTEREST COMMUNITY ADDENDUM TO CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL or VACANT LAND—FARM—RANCH)
AMENDMENT TO A CONTRACT TO BUY AND SELL REAL ESTATE
This Common Interest Community Addendum is made a part of the Contract to Buy and Sell Real Estate for the purchase and sale of the Property known as _________, which is dated _________, between Buyer and Seller (“Contract”). This Addendum shall control in the event of any conflict with the Contract. The following provisions of the Contract are amended by these additions:
3. INCLUSIONS AND EXCLUSIONS. The purchase price shall also include use of the following parking facility(ies): _________; and the following storage facility(ies): _________.
7c. COMMON INTEREST COMMUNITY GOVERNING DOCUMENTS.
(Check only one box)
o (1) Not Applicable. This subsection c. shall not apply.
o (2) Conditional On Buyer’s Review. Seller shall cause to be furnished to Buyer, at Seller’s expense, on or before Title Deadline (§2c) a current copy of the owner’s association declarations, bylaws, rules and regulations, party wall agreements (herein collectively “Governing Documents”), most recent financial documents consisting of (a) annual balance sheet, (b) annual income and expenditures statement, and (c) annual budget (herein collectively “Financial Documents”), if any. Written notice of any unsatisfactory provision(s) in any of these documents signed by Buyer, or on behalf of Buyer, and given to Seller on or before Governing Documents Deadline, [which is the same as Title Objection Deadline (§2c)], shall terminate this contract. If Seller does not receive written notice from Buyer within such time, Buyer accepts the terms of said documents, and Buyer’s right to terminate this contract pursuant to this subsection is waived, notwithstanding the provisions of §8d.
o (3) Not Conditional On Review. Buyer acknowledges that Seller has delivered a copy of the Governing Documents and Financial Documents. Buyer has reviewed them, agrees to accept the benefits, obligations and restrictions which they impose upon the Property and its owners and waives any right to terminate this contract due to such documents, notwithstanding the provisions of §8d.
8f. RIGHT OF FIRST REFUSAL. If the Governing Documents require written approval of the sale contemplated by this contract or waiver of any option or right of first refusal by the owners’ association or any other owner in the owners’ association, Seller shall timely submit this contract and request approval of the sale or waiver of any option or right of first refusal pursuant to such provisions. If no such approval or waiver is obtained on or before _________, this contract shall terminate. Buyer agrees to cooperate with Seller in obtaining the approval and/or waiver if required by the applicable Governing Documents and shall make available such information as the owners’ association may reasonably require.
14. CLOSING COSTS; DOCUMENTS AND SERVICES. Any fees incident to the transfer from Seller to Buyer assessed on behalf of the owners’ association shall be paid by o Buyer o Seller.
15e. ASSOCIATION ASSESSMENTS. Current regular owners’ association assessments and association dues. Owners’ association assessments paid in advance shall be credited to Seller at Closing. Cash reserves held out of the regular owners’ association assessments for deferred maintenance by the owners’ association shall not be credited to Seller except as may be otherwise provided by the Governing Documents. Any special assessment by the owners’ association for improvements that have been installed as of the date of Buyer’s signature hereon shall be the obligation of Seller. Any other special assessment assessed prior to Closing Date (§2c) by the owners’ association shall be the obligation of o Buyer o Seller. Seller represents that the amount of the regular owners’ association assessment is currently payable at $_____ per _________ and that there are no unpaid regular or special assessments against the Property except the current regular assessments and except _________. Such assessments are subject to change as provided in the Governing Documents. Seller agrees to promptly request the owners’ association to deliver to Buyer before Closing Date (§2c) a current statement of assessments against the Property. Any fees incident to the issuance of such statement of assessments shall be paid by o Buyer o Seller.
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Buyer
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Date of Buyer’s signature
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Seller
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Date of Seller’s signature