Condominiums - Buying into a partnership

By
Real Estate Agent with Wolf Real Estate Professionals

When you buy a condo, chances are you are buying a lifestyle.  One of the main reason's most people purchase a condo is so they don't have to do yard work or exterior maintenance.

Mid-Town Anchorage Alaska with Chugach Range MountainsHere in Anchorage Alaska, exterior maintenance means snow removal which is a hassle given Anchorage's long winters.

One thing most buyers don't realize is that when you purchase a condo, you are not only are buying into shared walls and shared amenities, you are also partnering with the other owners financially.

By partnering financially, I mean the association dues are set at a level meant to pay for services required to maintain the development in the manner the owners desire.

The assumption is that everyone will pay their respective parts through their dues.

When hard times fall on people, they begin to determine which bills are priority.  Sometimes people either can't pay or pay slow.  Their dues begin to lag.  Associations will begin to assess fines and late fees.  After a couple months, they will lien the unit for delinquent fees. 

When numerous people are in default, it can actatually affect the associations ability to pay their bills. 

This is why you receive a document from the association that discloses many details in the development such as what the dues are, what they pay for and any planned "assessments" that might be assessed in the future for repairs or improvements to the development.  In that document, you should see a delinquency report and see if there are units behind in their fees. 

In short, it pays to be aware, in a condominium, you share not only in the quality carefree lifestyle, but also become financial partners with other owners.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Tags:
condominium developments

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the envelope to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the world to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
176,170
Dan Rosenberger
Harvest Realty - Westfield, IN

Dan - If a certain percentage of owners are 30 days or more delinquent in their dues, it could affect the ability to sell the condo using FHA or conforming financing.  That is a situation that could be totally beyond the seller's control.  But if a condo development is "unapproved" it could have the advantage of a lower price, and there's the potential that it could become appoved in the future.

October 08, 2010 08:09 PM #1
Anonymous
Anonymous
Dan Wolf

You bet.  We're running into much tighter lender criteria for the HOA.  The buyer can qualify and the development might not be eligible for FHA or FNMA loans!  Interesting times!  Dan

October 09, 2010 01:25 PM #2
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the man to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainer
22,698

Dan Wolf

Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the magnifying-glass to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: