From the Hotline: Addendum for Property Subject to Mandatory Membership in a Property Owners Association

June 01, 2022

Members have been asking about buyers’ ability to terminate contracts under the first two checkboxes of Paragraph A, Subdivision Information, of the Addendum for Property Subject to Mandatory Membership in a Property Owners Association (TXR 1922, TREC 36-9).

Under Checkbox 1, if the seller delivers the subdivision information, a buyer can terminate within three days after receiving the information or prior to closing, whichever occurs first. If the seller doesn’t deliver the information, the buyer can terminate the contract at any time before closing.

Under Checkbox 2, if the buyer obtains the information within the specified time frame, the buyer can terminate within three days after receiving the information or prior to closing, whichever occurs first. If the buyer can’t meet the specified time frame through no fault of the buyer, the buyer can terminate within three days after the time required or prior to closing, whichever occurs first.

—Laura Miller, staff attorney

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