Sun City West, AZ asked in Contracts and Real Estate Law for Arizona

Q: Contract reads: “No variance or modification hereof shall be valid or enforceable accept by supplemental agreement…

In writing , executed & approved in the same manner as this agreement”. They changed pricing several times without supplemental agreement. Wouldn’t updated pricing be invalid? Contract wasn’t voted on by HOA Board like original one because HOA Pres. said it auto renewed. But they changed part of the contract & pricing. Is contract valid?

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1 Lawyer Answer

A: This sounds like your speaking about your condominium bylaws or declaration. To know whether the pricing change is a violation of the original agreement or permissible, we'd need to know whether the pricing is: (a) a fixed number, or (b) a formula.

Typically, costs that would be assessed to a homeowner under an HOA will be variable (ex. operating expenses on a year-to-year basis, or real estate taxes payable). For this reason, they usually will be set by a formula (e.g., total amount of operating expenses multiplied by your percentage ownership in the building or development, divided by 12 will equal your monthly payment).

If they are set by formula, then the agreement will not require an amendment to change the amount charged to you.

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