HOA Fees and Property Taxes EXPLAINED - (North Carolina Contract Deep Dive: Part IV) | Summary and Q&A

324 views
October 26, 2022
by
The Real Estate Lawyer
YouTube video player
HOA Fees and Property Taxes EXPLAINED - (North Carolina Contract Deep Dive: Part IV)

TL;DR

This episode of the North Carolina Real Estate Show discusses sections 9-13 of the North Carolina standard offer to purchase contract, covering topics such as HOA fees, tax prorations, property condition, delay in settlement, and possession agreements.

Install to Summarize YouTube Videos and Get Transcripts

Questions & Answers

Q: What fees are the seller and buyer responsible for paying in regards to Owners Association charges?

The seller is responsible for fees such as HOA verification fees and breakup fees, while the buyer may have to pay the capital contribution fee and regular HOA dues.

Q: How are taxes prorated in North Carolina real estate transactions?

Taxes are prorated on a calendar year basis, regardless of the County's fiscal year. This means that taxes are calculated from January 1st to December 31st, and the seller is responsible for taxes on personal property unless it is conveyed to the buyer.

Q: What is the condition of the property and risk of loss provision in the contract?

The property must be in the same or better condition as when the contract was signed. The risk of damage or loss to the property is on the seller until closing, and it is recommended that the seller does not cancel their insurance until after the deed is recorded.

Q: What are the requirements for a valid delay in settlement and closing?

The party requesting the delay must notify everyone as soon as they know a delay is going to happen. The delay can only be for a maximum of seven days, and it must be impossible for the party to complete settlement on the agreed-upon date due to circumstances beyond their control.

Q: What options are available for possession agreements in real estate transactions?

The options include buyer possession before closing, seller possession after closing, or taking possession subject to a tenant. If no addendums are used, possession must be delivered at closing.

Summary & Key Takeaways

  • Section 9 focuses on charges by the Owners Association, detailing what fees the seller and buyer are responsible for paying, such as HOA verification fees and capital contribution fees.

  • Section 10 discusses tax prorations and adjustments, emphasizing that taxes are prorated on a calendar year basis, regardless of the County's fiscal year. It also covers prorating personal property taxes and rent if there are tenants in the property.

  • Section 11 addresses the condition of the property and the risk of loss, stating that the property must be in the same or better condition as when the contract was signed, and the risk of damage or loss is on the seller until closing.

  • Section 12 covers the delay in settlement and closing, allowing for a seven-day delay if it is impossible for one party to complete settlement. However, there are specific requirements for a valid delay, and the paragraph can often lead to disputes.

  • Section 13 discusses possession agreements, offering options for buyer possession before closing, seller possession after closing, or taking possession subject to a tenant. If no addendums are used, possession must be delivered at closing.

Share This Summary 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on:

Explore More Summaries from The Real Estate Lawyer 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on: