As a Florida real estate attorney, Hank Sorenson represents brokers and agents, among other clients.

Too bad they don't always heed his advice.

Take the pitfalls of a written offer when a condo or HOA association is involved, for example.

Realtors should know about community format associations because nearly 42 million Americans live in condos, coops, and communities governed by homeowners associations. More than 200,000 condominium, cooperative and homeowner associations have been formed over the past 70 years, and about 50 percent of new homes in metropolitan areas are developed in a planned community format, says the Community Associations Institute Research Foundation.

But many Realtors believe they can operate as if all property is single-family and contracts are still one-page long.

"I had a risk management seminar with a brokerage in November," recalls Sorenson. "I told the managing brokers that whenever their selling agent had a buyer, and a condo association or HOA was involved, that the initial offer should have an addendum making the contract contingent on receipt and satisfactory review of the last six months of board minutes."

The purpose, says Sorenson, is that the board minutes would disclose all potential assessments and other minute details about the community that the seller might not know about or disclose.

"One of the managers just called me," says Sorenson. "His selling agent has a buyer who got a condo inspection (on her $80,000 condo) that disclosed the roof was in bad shape, but it was watertight (so there was nothing to repair for purposes of the repair limit).

"The next day the buyer had an interview with the president of the condo association," continues Sorenson, "to be approved for admission at which time she brought up the roof issue. The president acknowledged it and said that the board had discussed the matter at its last two meetings, and there was probably going to be a $1,000 assessment proposed in the next two months to be voted on by the board.

"The buyer went back to the seller with this info, and the seller claimed she had never been to any of the meetings nor seen the meeting minutes, so she had no knowledge of this (which is entirely plausible) and therefore couldn’t disclose it. The selling agent has egg on her face now and the buyer is upset, but she has no remedy against the seller nor any ability to get out of or even renegotiate the sales contract," says Sorenson.

You guessed it, the selling agent had failed to ask for the six months of minutes before writing the purchase the offer. Once the offer was accepted, it was too late for the buyer because the roof did not meet the repair limit.

While he hates to say "I told you so," Sorenson reminded the manager of the seminar he taught last November. The manager did indeed remember, and told Sorenson, that asking for six months of minutes is now going to be "office policy."

Published: February 4, 2004

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.