If a property is part of a community association, you’re probably already including the Community Association Disclosure (CAD) form with your contracts. Great start. But here’s the part that often gets missed: Attaching the CAD isn’t enough. It also must be listed in the purchase agreement as an exhibit.

If it’s not, it can raise questions down the line about whether the CAD is part of the contract and that’s where problems can start.

Why does this matter? 

If the CAD isn’t properly referenced, here’s what can happen:

• Buyers and sellers may not be on the same page about what’s been disclosed
• The lender might flag it and ask for clarification (or worse, a delay)
• The closing team may have to scramble to sort it out at the last minute

None of this is fun, and all of it is avoidable.

Luckily, there is an easy fix! 

Just make sure that the CAD isn’t just attached to the offer. Make sure it’s listed in the Exhibits section of the Purchase & Sale Agreement

One small checkbox can save everyone a big headache.

Want to learn more?

Attorney Robert Butler explains it in this short video:

Have questions? Give us a call. We’re here to help you.