Donna, Home Buyer in Westlake Village, CA

I have not received CCRs do I have to remove contingencies?

Asked by Donna, Westlake Village, CA Wed Feb 3, 2010

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Bonnie Sterling’s answer
Hi Donna,

You should talk to your broker but my guess is that you may have already spoken to your Realtor and are reaching out for other answers. I have clients who entered into a contract over 4 weeks ago that just got the CC&R's yesterday and they are suppose to fund their escrow tomorrow. Well, that just isnt realistic. The delay was caused on the sellers side and we have documented that the documents were requested many times and that the seller and escrow were requested to provide it. This was for an REO purchase so, unfortunately, it is all too common. I hope that your reqeusts for the CC&r's was well documented and a notice to perform can be part of that.

However, you may want to talk to your Realtor about showing good faith and removing the contingencies that are satified. You do not have to remove all contingencies at the same time. The form for contingency removal actually breaks down the contingencies individually or allows you to removal "all except...". So, that may be prudent to combine with the notice to perform.

Of course, I am sharing general knowledge of forms and that delays do occur with HOA documents. So, these are just some ideas that you shoudl discuss with your real estate professional, be it your attorney or Realtor. If you are not getting the answers you need from your Realtor you can always try to reach the brokerage management or Broker of record for the office. They will want you to be satified with your experience as they are ulimately responsible to you. So, try working with your Realtor first but remember that there are additional choices before you get too frustrated. And good luck, I am sure that the documents will show up.
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2 votes Thank Flag Link Wed Feb 3, 2010
No you do not have to remove the contingencies. I The sellers were given a copy, either they lost them or they are hiding something.
Do not release the contingencies until the homeowners association ia approved by your lender. Otherswise the deal could go south, and you will have fight like mad to get your deposit back. Call your lender and make sure they do not wait until the last minute to order the Condo cert. as most of the lenders out there so often do.
If the association does not get approved, the loan will not go through. It is clear you do not want to wait to the last minute to find out this information.
0 votes Thank Flag Link Mon Nov 14, 2011

Assuming this is a California Association of Realtors purchase agreement, no you do not have to remove contingencies for the CCRs. You have five days from receiving these documents before you are required to remove that contingency, if the original contingency period has already passed.

Any time material facts regarding the property that are discovered or disclosed after you have removed contingencies you get five days to determine how you would like to handle the new issue(s). If the seller delays in giving contractual disclosures and buyer due diligence materials, then the seller cannot demand the buyer to remove contingencies until either the typical 17 day period is up or the five days upon receipt, which ever is longer.

What I mean by discovered above is, after you have completed your inspections and remove your contingencies, if something happens at the property or something that occurs that affects the house, you get time to decide what you want to do. An example, the large tree in the front yard falls over onto the house and damages the roof or there's an earthquake during escrow and the chimney is destroyed. Even though your inspection period has passed, these would be new conditions affecting the property.

CCRs can be very entertaining. In older neighborhoods you'll see all kinds of language in the CCR's that violate fair housing laws, discrimination laws, and goofy ideas people thought they could restrict neighborhoods over. For example, in my neighborhood (1965) the CCR's state that no homeowner in my tract is allowed to post a for sale sign in their front yard when they sell their house. More commonly, you will see CCR's control what colors homes can be painted and similar issues. Here's the catch, even if your neighbor decides to paint their house purple, if there is no HOA, then you would have to spend the money to sue the offending neighbor and prevail. Even if you are awarded a judgment against a neighbor who painted their house purple, it would still be difficult to force that neighbor to repaint their house. The neighbor would need to clear up the judgment if they were going to refinance to try it, sell it, try to obtain new credit but it doesn't mean that the police will show up and force them to paint their house.

If this is an older neighborhood without an HOA, if you find any of the kooky crazy stuff landowners used to put in the CCRs, please post them up here, it's always interesting to see how people use to behave years ago.

Sometimes, the CCR's are included with the HOA docs. If this is the case, it is not unusual for management companies to delay in getting the documents to escrow on time. If this is a local Title company - First American, Fidelity, Chicago, Lawyers, they all have title plants here in Southern California, your agent should be able to talk to the Title Officer directly to get a copy of the recorded CCR's. The Title Officer is not the Title Rep.
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0 votes Thank Flag Link Thu Feb 4, 2010
Hi Donna, assuming you are using CAR's "California Residential Purchase Agreement" (revised 11/07), and only generally addressing your question, NO, you do not have to remove your INVESTIGATIVE contingencies. Your Loan and Appraisal are separate matters.

Para 14B(1) states how long you have to remove your Investigative contingencies; however, as noted in Para 14B(3)iii, if Common Interest (CI) disclosures have not been made in the timeline afforded by 14B(1) you have 5 days AFTER you receive these disclosures to remove your Inspection contingencies.

Note that Para 6B specifically states how many days the Seller has to order CI disclosures, which should be done via CAR form HOA to meet Civil Code requirements.

Best, Steve
0 votes Thank Flag Link Wed Feb 3, 2010
Hi Donna,
Great question. I agree with Barry that you give the seller a "Notice to Perform." If you're currently working with an agent please consult with them since I don't know what your contract stated. Best of luck to you!
0 votes Thank Flag Link Wed Feb 3, 2010

I agree with Barry. Consult your contract together with your agent.
0 votes Thank Flag Link Wed Feb 3, 2010
Hi Donna,

Not knowing the intricacies of your specific transaction, I would advise you to give the Seller a Notice to Seller to Perform. Then, you would be protecting your interests and still have 5 days to review the CCRs before removing that disclosure contingency. Good luck!
0 votes Thank Flag Link Wed Feb 3, 2010
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