Strath Haven Condominiumns
During the Roman Empire, the term “condominium” came into use to describe a building where owners occupied separate floors but shared a common roof. Over the years, as condominiums have grown in popularity throughout the country they have become governed by statues. In Pennsylvania condominiums are governed by the Uniform Condominium Act which outlines the rights and responsibilities of condo owners and Homeowner Associations are governed by the Pennsylvania Uniform Planned Community Act.
The Act also details specific rights of potential condo and HOA buyers in the standard Pennsylvania Agreement of Sale. Among these rights is the buyer’s ability to terminate an agreement that centers around the review of the documents and by laws of the condominium or homeowner’s association.
The paragraph reads:
The Act provides that Buyer may declare this Agreement VOID at any time before Buyer receives the association documents and for 5 days after receipt, OR until settlement, whichever occurs first
When a buyer and seller enter into an contract that involves a condominium or homeowners association the current set of association documents, including the by laws, rules and regulations, budget, etc, must be ordered by the seller within 15 days of the execution of the agreement.
Once the documents are received by the buyer a document known as a Receipt Of Documents is executed and the buyer then has 5 days in which to review the package of association documents. If upon this review there are rules, budgetary issues, etc. that concern the buyer they have the right to terminate the contract within the 5 day period and have their deposit money returned to them. The buyer also has the right to void the contract at any time before the receipt of association documents.
This protection is afforded to buyers of a condominium or homeowners association in order to allow them time to review the laws of the association as they pertain to their future daily life in the community. For instance if the association does not allow barbeque grills on unit balconies, or there are restrictions on the exterior paint colors, and such an restriction would be considered unreasonable by the buyer they can opt to back out of the contract.
Generally such rules are known to buyers prior to entering into a contract, but there cane be some hidden regulations that are not widely know that would cause a buyer some reservation.
This provision actually does work as I recently had a buyer who after reviewing the homeowner association documents was concerned about several regulations contained in the association by laws. He elected to terminate the contract and received his deposit money back.
Wallingford PA Real Estate – Wallingford, PA 19086
