New condo about to close - POS changes without me being notified

[rk23aa]

I am closing soon on a new condo I purchased last year and just found out something in the POS which worries me. Doesn't the Seller need to notify the buyer any changes or updates to POS! They changed it in Nov 2007 and we had to sign everything and return back but I noticied something new on the POS which I was never sent or notified. This scares me and seems like they tried to hide this.

The POS has a new section added

For the xxxxxxxxx Community, Declarant asked the professional management company, The xxxx Group to establish reserves which would be adequate, in its professional judgement, based on its experience with other comparable condominium communities. The estimaed budget included with this Public Offering Statement reflects these recommended reserves. However, Senate Bill 6215, effective June 12, 2008, requires that the following notice because Declarant did not complete a reserve study:

This Association does not have a current reserve study. This lack of a current reserve study poses certain risks to you, the purchaser. Insufficient reserves may, under circumstances, require you to pay on demand as a special assessment your share of common expenses for the cost of major maintenance, repair, or replacement of a common element.

Dated this 21st day of August, 2008

[rk23aa]

The condo is only 48% sold which is why the above statement scares me

[HomeGuru]

Originally Posted by rk23aa

I am closing soon on a new condo I purchased last year and just found out something in the POS which worries me. Doesn't the Seller need to notify the buyer any changes or updates to POS! They changed it in Nov 2007 and we had to sign everything and return back but I noticied something new on the POS which I was never sent or notified. This scares me and seems like they tried to hide this.

The POS has a new section added

For the xxxxxxxxx Community, Declarant asked the professional management company, The xxxx Group to establish reserves which would be adequate, in its professional judgement, based on its experience with other comparable condominium communities. The estimaed budget included with this Public Offering Statement reflects these recommended reserves. However, Senate Bill 6215, effective June 12, 2008, requires that the following notice because Declarant did not complete a reserve study:

This Association does not have a current reserve study. This lack of a current reserve study poses certain risks to you, the purchaser. Insufficient reserves may, under circumstances, require you to pay on demand as a special assessment your share of common expenses for the cost of major maintenance, repair, or replacement of a common element.

Dated this 21st day of August, 2008

**A: so what is your question?

[rk23aa]

Isn't it illegal for them to change the POS without having the buyer sign it or notify the buyer?

Couldn't I get out of the contract and get my earnest money because of this if I wanted to?

[HomeGuru]

Originally Posted by rk23aa

Isn't it illegal for them to change the POS without having the buyer sign it or notify the buyer?

Couldn't I get out of the contract and get my earnest money because of this if I wanted to?

**A: no it is not illegal. It could be a breach of contract is there is referene to a POA not being allowed.