What Every FL Condo Buyer Should Know....
Posted 05-02-2018 at 08:28 PM by Sunshine Rules
Before buying a condo, there are a number of questions I would ask regarding Rules & Regulations, Bylaws and voting rights, BUDGETS, Budget Reserves for big ticket maintenance (a very important factor), routine maintenance, the Board (try to get & read several months worth of meeting minutes) and whether there are any current or pending lawsuits against the condo association (if there are current lawsuits, it may limit your financing options).
The financials of a condo association are, in my opinion, as important (if not more so) than current monthly fees. Is the association meeting it's current financial obligations? Do they have sufficient reserves for the more expensive maintenance/repair items (such as roofs) or can you expect to see special assessments to help cover costs? How many owners are behind in their payments?
Meeting minutes will give you a better idea as to what is going on within the condo community -- are they having issues with an owner/tenant that may lead to a lawsuit? Are they discussing unexpected maintenance issues? Rule changes?
I would also want to know how many units are owner occupied and how many are used as rentals. If there are a large number of rentals within the community and you are looking for something to use as your residence, you may want to rethink that particular community. Investor owners generally vote with their wallets in mind. It's also more difficult to get conventional financing if more than half the owners are investors.
The more homework you do up front when purchasing a condo, the less likely you will encounter surprises later on.
The financials of a condo association are, in my opinion, as important (if not more so) than current monthly fees. Is the association meeting it's current financial obligations? Do they have sufficient reserves for the more expensive maintenance/repair items (such as roofs) or can you expect to see special assessments to help cover costs? How many owners are behind in their payments?
Meeting minutes will give you a better idea as to what is going on within the condo community -- are they having issues with an owner/tenant that may lead to a lawsuit? Are they discussing unexpected maintenance issues? Rule changes?
I would also want to know how many units are owner occupied and how many are used as rentals. If there are a large number of rentals within the community and you are looking for something to use as your residence, you may want to rethink that particular community. Investor owners generally vote with their wallets in mind. It's also more difficult to get conventional financing if more than half the owners are investors.
The more homework you do up front when purchasing a condo, the less likely you will encounter surprises later on.
