FACTS: A seller received an Arizona REALTORS® Residential Resale Real Estate Purchase Contract offer with the following terms:

Section 2j of the Contract (Seller Concessions) – “Seller will credit Buyer 1.5% of the Purchase Price.”

Section 8a “HOA transfer and capital improvement fees to be included in seller’s concessions.”

On the HOA addendum (page 3), the buyer marked – the seller shall pay the transfer and capital improvement fees.

The seller sent the buyer a Counter-Offer which stated, “The seller will not agree to pay 1.5% in seller concessions.” The seller did not address the remaining terms of the offer, including the HOA transfer and capital improvement fees.

The buyer accepted the Counter-Offer.  At close of escrow, the seller is now refusing to pay the HOA transfer and capital improvement fees.

ISSUE: Is the seller obligated to pay the transfer and capital improvement fees?

ANSWER: Yes.

DISCUSSION:         

The seller countered the seller concessions to be removed from the Contract.  However, the seller failed to counter the HOA addendum terms, which still reflected the seller paying the HOA transfer and capital improvement fees. Therefore, the seller is obligated to pay those fees.