The parties agreed to amend the Residential Sales Contract to remove all requirements on Seller to comply with POA or COA’s notices of violations related to the physical condition of Property. To accomplish this change, the parties signed Paragraph 2(B), Checkbox #5 of the Contingencies/Clauses Addendum (K1344). Later, Buyer discovered in the resale disclosure packet that Seller received a notice of violation for failure to pay association dues. Is Seller responsible for the unpaid dues?

 

Yes.

Paragraph 20 of the Residential Sales Contract states that “[u]nless otherwise agreed to in writing, Seller will pay any special assessments and will comply with all orders or notices of violations of any … condominium unit owners’ association, homeowners’ or property owners’ association … against or affecting Property on Settlement Date.

Paragraph 2, B, Checkbox #5 of the Contingencies/Clauses Addendum amends the Contract by deleting “[a]ll requirements for Seller to comply with Property Owners’ or Condominium Owners’ Associations notices of violations related to the physical condition of Property” (emphasis added).

While Checkbox #5 may release Seller from violations related to paint colors, fencing, and landscaping, it is insufficient to excuse non-payment of association dues. Unpaid dues are monetary obligations and do not relate to the “physical condition of the property.” Thus, unless otherwise agreed to in writing, Seller must resolve delinquent dues violations prior to or at Settlement.


Commercial Council