Friday, May 4, 2012

Things You Should Consider: Condos, HOAs, and the Rules

Condominiums are great places to live. There are community features that sometimes a homeowner would not be able to have in a single family residence. When shopping around for a condo, potential buyers should research a few things before submitting an offer.

One of the more important factors that influence potential buyers of condos is the Home Owner Associations (HOA). HOAs have printed Covenants, Conditions, and Restrictions (CC&Rs) that inform tenants/owners what they can and cannot do. It is recommended (if possible) to review a copy of the current CC&Rs. Hypothetically speaking; you may be the type of person who loves to work on your car on the weekends. Some CC&Rs may prohibit you from working on your vehicle in your driveway. Or perhaps you have a beautiful pet who you have had lived with for years, but the condo you are interested in does not allow pets above 25 pounds. These are things you would want to know before purchasing or leasing a condo.

If purchasing a condo, it would be advisable that you ask for a copy of the HOA’s financial statements. If an HOA is collecting HOA fees from home owner’s but has very little money in their reserves, it should raise a few questions from the potential buyer. Also, if possible, a potential buyer should ask to review the minutes from HOA Board meetings. As a potential home owner in these buildings, you would want to know what is being discussed in the meetings.

Condos can be great living spaces for certain people, but we recommend researching more than the asking price and HOA fees before making a decision. Happy searching everyone!

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