Question: The home is in an HOA community of less than
fifty homes. The Seller timely delivers to the buyer a “package”
of HOA documents including the CC&Rs. The Buyer does not disapprove
within the five-day time period. Two weeks later the Seller delivers
the HOA rules and regulations to the Buyer. The Buyer in good
faith does not approve of these HOA rules and regulations, and
wants to cancel the transaction. Is the Buyer entitled to cancel
the transaction?
Answer: Yes. Under Lines 158-159 of the Contract the Buyer
has the right to cancel the Contract within five days after receipt
of all “governing documents” of the HOA. The HOA rules and regulations
are a governing document. A.R.S. § 33-1806 (A) (1). Therefore,
the Buyer in good faith has the right to cancel the Contract within
five days after receiving the HOA rules and regulations.
