While escrow was pending, but after the inspection period, the HOA passed a regulation requiring that all homes in the subdivision be painted a specific color. Based on the new HOA regulation, the home at issue must be painted. The seller updated the SPDS to reflect this information. The buyer does not like the mandated color and does not want to spend the additional money necessary to paint the house.
May the buyer cancel the transaction based on the new HOA rule?
Pursuant to Section 4f of the Residential Resale Real Estate Purchase Contract, the buyer has five (5) days after receipt of a SPDS or any updates thereto to cancel the transaction based on newly disclosed information. Here, because the obligation to paint the house is not acceptable to the buyer, the buyer has five (5) days after receipt of the updated SPDS to cancel the transaction.