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#2047042 - 10/29/15 06:34 PM LE addendum for fees
MonicaMc Offline
100 Club
MonicaMc
Joined: Dec 2013
Posts: 238
Land of Oz
Section A says no more than 13 items listed. But no mention of using an addendum.
Section B says no more than 13 items listed, but does say to NOT use an addendum for more than 13 fees.
Section C says no more than 14 items listed, but does say TO use an addendum for additional fees.
Section H says no more than 5 items listed, but does not mention any use of an addendum.

Should we be using addendums for Sections A & H when we have more than the allotted # of fees? I am not worried about A, but we now have an LE that we need to issue where there are numerous inspections on the contract, a plot plan, RE commission fees, plus Owners title ins. Which ends up being 7 fees. Do we do an addendum and list out the additional fees? If not, how do we decide what gets disclosed on the LE and what doesn't?

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#2047058 - 10/29/15 06:49 PM Re: LE addendum for fees MonicaMc
Island Dreaming Offline
100 Club
Joined: May 2009
Posts: 233
midwest
For Section H - you are correct that no more than five items are listed. If there are more than five, the last line should be an aggregate of all other fees and labeled additional charges. Here's the reg cite:

(iii) The number of items disclosed under this paragraph (g)(4) shall not exceed five.

1026.37(g)(8) Use of addenda. An addendum to a form of disclosures prescribed by this section may not be used for items required to be disclosed by this paragraph (g). If the creditor is not able to itemize all of the charges described in this paragraph (g) in the number of lines provided by paragraphs (g)(2)(vi), (3)(v), or (4)(iii) of this section, the remaining charges shall be disclosed as an aggregate amount in the last line permitted under paragraphs (g)(2)(vi), (3)(v), or (4)(iii), as applicable, using the label “Additional Charges.”
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#2047066 - 10/29/15 07:00 PM Re: LE addendum for fees MonicaMc
MonicaMc Offline
100 Club
MonicaMc
Joined: Dec 2013
Posts: 238
Land of Oz
So do the same as what the Section B requirements are. List Additional Charges in line 5 with the total of all other fees and move on. I assume there is not requirements on which fees should be listed over other fees? If we have more than 5 "other" fees, then our Owner's Title Ins won't be disclosed other than when we add it into Additional Charges.

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#2047070 - 10/29/15 07:08 PM Re: LE addendum for fees MonicaMc
Island Dreaming Offline
100 Club
Joined: May 2009
Posts: 233
midwest
The fees are listed alphabetically. We've had a couple with more than 5 fees and, yes, the owners title ended up being in the 'additional charges'.
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