Question for realtors or condo owners?

[TLH1977]

Today I went to look at a townhouse that i was very interested in, only the outside was pretty shot and need to be redone with new siding and decks. The realtor told me they were planning on having a meeting to determine the assessment each owner would have to pay but did not know when. She could not tell me even where about the price would be. As a potential buyer I then figured out what my monthly payments would be with common charges and taxes included. If i was hit with a $300a month assessment on top of that i would be in trouble. If i made an offer now without any assessment being mentioned and it got accepted but i didnt close until august 1st who would be responsable if the assessment came in july? Would i still have to follow through with the deal? Would i pay it? Seems like the realtor selling it does not want to give much info up? HELP!

 

[Figment2]

As a condo owner who has been on the condo board I have seen where new owners come in and are immediately responsible for special assessments (and are not happy campers). Have it written into your contact that the previous owner will be responsible. You will probably get some kind of credit at closing. The board and the management company probably have a pretty good idea of what it's going to cost per unit. If this realtor is working for you (not the condo assn or management company), she/he should be able to find out an approximate amount. If nothing else you could try and call the management company.

We have 25 buildings with 4 condos in each building and our square footage is about 1,200 ft. The last time we did painting and repairs to the buildings, each owner had to ante up $1,000 each.

Be sure you have legal representation to go over the declarations and make sure everything is in order. Finally, be sure you know the rules and regulations before you make an offer. Example, can you have a pet; are pets limited in number and size; do outside lights need to be on at night and who is responsible for maintaining the lights; who is responsible for watering plants, etc. I cannot tell you how many times I heard something like "I had no idea I couldn't have my 4 great danes."

Cyn

 

[arminnie]

Former condo owner here - we had a $4000 assessment just as I was selling but payable over about 4-5 years. My wonderful realtor wrote the contract that the buyer was responsible for the unpaid portion of the assessment - thinking that it would be a negotiating point.

The stupid realtor for the buyer never read the contract and told the buyers that I was paying it. Of course it all goes according the the written agreement so they had to pay. I'd have paid in a minute if they had asked during the offer. I also would have agreed to pay for new carpets if asked - they had a really bad realtor. When they sold they used my realtor.

But the same association is now looking at about a $20,000 assessment per unit (several years later). These things can get very expensive especially if they have delayed maintenance.

 

[arminnie]

I cannot tell you how many times I heard something like "I had no idea I couldn't have my 4 great danes."

Cyn

I just bought a condo in New Orleans (10 days pre Katrina). The first question I asked as if pets were allowed. Most of the time the answer was no. For one unit they told me that I could have my dog there "a few times a year" - yeah right. Just an owner trying to bent the rules so she could sell the unit.

 

[TLH1977]

Thanks for the imput guys. Now im trying to figure out why the unit im interested in is 1400sq feet and the common charges are 147.00 a month yet bigger townhouses with 1500sq feet in the same complex are only 135.00. Some much to know!!! Also, do you think the realtor should be telling potential buyers there is going to be an assessment or only if they ask? We asked so my reatlor kinda told me there was gonna be one yet today at the openhouse the realtor did not offer any info about it or the fact that taxes went up on thurs, and its gonna be another 400.00 a year!

 

[lowie]

Thanks for the imput guys. Now im trying to figure out why the unit im interested in is 1400sq feet and the common charges are 147.00 a month yet bigger townhouses with 1500sq feet in the same complex are only 135.00. Some much to know!!! Also, do you think the realtor should be telling potential buyers there is going to be an assessment or only if they ask? We asked so my reatlor kinda told me there was gonna be one yet today at the openhouse the realtor did not offer any info about it or the fact that taxes went up on thurs, and its gonna be another 400.00 a year!

i don't know where you live, doesn't sound like it's in Florida as the taxes 'went up on Thursday' but here in Florida if the assessment has even been mentioned at any Board meeting then the Realtor must disclose it to the buyer, but at the time of contract, not at an open house. If the assessment is just a rumor running through the neighborhood then it doesn't need to be disclosed.
you've already had good advice about making sure the payment terms are clear in the sales contract. you can also ask for a set amount to be put in an escrow account for future assessments, but the buyer doesn't have to agree to it. everything is negotiable.
make sure you ask to get a set of community documents at the time of contract to look over with a certain amount of time to get out of the contract if you don't like what you read.
sounds like your realtor may not have your best interest at heart. i'd look for a new one, or at the very least, knock on a few doors in the neighborhood and ask question.
Lori <<<---- realtor & licensed community and condo association manager

 

[arminnie]

You also need to look very closely at the budget. How large is the complex?
Not only how many units, but how much grounds are there. Is there a pool? Tennis courts? What utilities are included - water and trash are common.

Is there a sum being put aside for new roof when needed or other major repairs like painting.

How many of the units are rentals vs owner occupied? Has maintenance been done on a regular basis? Is there adequate insurance - including flood or earthquake if you are in an area prone to that.

$147 a months sounds pretty low to me. It may not be adequate to pay for long-term maintenance and you will be hit with an assessment if that's the case.

How old is the complex? Has the condo association been up and running or is the builder still in control.

Be sure to have a thorough inspection done.

 

[TLH1977]

Thanks guys for the information. My realtor called today with a number, looks like they want close to $5,000 for new decks, roofs, and siding. SHe thinks the owners would pay half but would try to get it totally paid for if i wanted. I just have one more question. Since this is my first home and things are so expensive my parents were condsidering being like a non-occupying coowner and own/pay for 25%. They think this will actually help them in the long run come tax time they could show they have been making payments. Has anyone ever done this? I have a call out to mortgage guy at bank but he hasnt returned the call. Gonna go search the web to see what i could find out

 

[barkley]

i think you need to check the condo association rules and make sure they permit this type of arrangement (i think some don't allow these because they don't want to end up having to deal with an absent owner albiet a co-owner). the other things you have to watch out for in co-owning is that if the co-owner becomes subject to a lawsuit or financial problem, that property is fair game (and if the co-owner pre-deceases you unless there is something in writing that leaves it fully to you a nasty relative can come in for their cut of the then equity). i think there might also be problems tax wise for your parents if you were to sell down the line-my understanding of the capital gains law is that unless a person resides in the property full time for something like 2 years prior to the sale the entire amount of their profit will be subject to capital gains tax-so despite it being "your" property for all intents and purposes it could end up costing them down the line (or costing you out of the profits to cover their tax expense). if they have a cpa who does their taxes a quick call might provide some great insight.