What happens if the HOA does not approve my purchase or application?

If an HOA denies your purchase application or approval, the outcome depends on what your purchase contract says about HOA approval and whether it was written as a contingency. The standard Arizona AAR purchase contract includes an HOA addendum that lets you review the disclosure package and cancel within a set period if the terms are unacceptable, but it does not always make formal HOA approval a condition of closing. If the HOA has right of first refusal or application approval requirements and denies you, and that was made a contingency, you can typically cancel and receive your earnest money back. If it was not a contingency, the situation becomes more complicated. Jon can help you understand the contract terms and your options.