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I thought I saw this addressed in another thread, but now I can't find it. My question is, if an owner is behind on his HOA fees on a condo that he owns at one of the resorts in MB, can the new owner be held responsible for the delinquent fees after the property changes hands? I know that when there is a lender involved the lender will check to see if there are any liens against the property and if there are they won't lend the buyer money. However, we are in the process of purchasing a short sale condo in MB and while we wait for the bank to decide if they are going to accept our offer, I don't want the current buyer to have stopped paying his HOA fees and for us to be held in any way responsible for them. We are paying cash, so there is no lender involved who would catch it if they tried to do this. Does anyone know if this is possible at all? Also, do you know if we called the resort's management company and told them that we are the potential new owners if they would tell us if the current owner is behind on his fees? Any information would be much appreciated. Normally, I wouldn't be too worried, but this short sale has been dragging on for months (as short sales usually do), so if the seller has an inkling that he will be getting out from underneath the condo, he may have decided to stop paying his fees for all these months and we need to be 100% sure that the resort cannot place a lien on the property to recoup the lost fees.
canudigit, it may have been your thread that I hijacked at one point. My parents were thinking about buying a condo and my brother had a similar question regarding delinquent HOA fees. Here is the link. Sorry, but I can't help you more. My parent decided against buying the condo.
I also have an email out to our realtor in MB, but so far he hasn't replied. The resort where we are purchasing a condo has a system in place, which is similar to most resorts, in which they send out a monthly statement with all of the owner's expenses itemized and deducted from their rent income, and anything left over is profit. Hopefully, if the seller is defaulting on his HOA fees, they are simply deducting it from his rental income, and since this resort has been filled pretty much to capacity so far this summer, the rent is more than enough to cover the HOA fees.
You need to have an attorney represent you through the sale. An attorney will cost you a whopping $600. I suggest you retain one and use them. They will be able to look after you in your best interest. They'll be able to have the HOA fee stuff listed in the contract.
I wouldn't recommend buying a condo ever. If you're thinking about moving permanently, invest in a home. If you're thinking about a vacation home, invest in a time-share or a beautiful log cabin. Condos can be trouble and a hassle. Learn from my experiences...
I wouldn't recommend buying a condo ever. If you're thinking about moving permanently, invest in a home. If you're thinking about a vacation home, invest in a time-share or a beautiful log cabin. Condos can be trouble and a hassle. Learn from my experiences...
I'm sorry to hear that you had a bad experience with condo ownership. I have spoken to several people though who own vacation condos and do highly recommend it. I think it depends on so many factors whether or not it will be a positive thing. We are looking at the fact that the purchase price is actually 28% of the price that the seller paid only three years ago, the property gets 90+% excellent ratings by guests, it has lots of amenities such as stainless steel appliances, granite countertops and a double vanity in the master, and it has 85% overall occupancy during peak season and 95-100% on the weekends. Under those circumstances, we feel like we will likely do okay.
Honestly, I do not consider a timeshare an investment, since you aren't really buying anything but advance rent on a property. I know that there are people who would not agree with me, and that's fine, there's something for everyone.
Log cabins are nice, but we ultimately want to be on the beach, especially after we checked out a couple of cabins in the Gatlinburg area, and they were very outdated and in poor condition for the price compared to this condo.
I feel confident that we will be happy with our decision. We don't expect to make money every month, we are looking at it as a long term investment. We are paying cash, so not having a mortgage payment will help immensely. If we do indeed find that we don't like being vacation condo owners, we can always sell and invest the money in more rental property where we live full-time. Life is short. I really do appreciate your warning, but I think it will be okay.
Last edited by canudigit; 07-22-2011 at 07:57 PM..
We love our condo. The other owners who live here year-round watch out for our place. While we don't rent our place out except to family and close friends, the other units seem to have a pretty high occupancy rate. Like you said, try it and if the fit isn't right, you have an exit strategy. Good luck.
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My parents were thinking about buying a condo and my brother had a similar question regarding delinquent HOA fees. Here is the link. Sorry, but I can't help you more. My parent decided against buying the condo. 
Condo Fee
