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Old 03-22-2014, 02:08 PM
 
Location: Kailua Kona, HI
3,199 posts, read 11,692,154 times
Reputation: 3403

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Quote:
Originally Posted by Nell Plotts View Post
The OP is wanting to close on a co-op, not a condo. I live in a co-op and while one of the questions is inappropriate (bank account number) the others, as I recall, are not. References are very important because they want to know if the resident(s) will be good tenants. It is much more complicated to evict a co-op resident than a renter. For example, we have a tenant who has a piano. We have other pianos in the building with no problem but this guy is also hard of hearing, his piano was in the basement of his former home, and he is being a PITA when we try to manage his 'concerts'. Our board should have done more than a more than preemptory review of his references they may have been able to nip this in the bud.

The other questions go to identity and legal residency in the US, the ability to do a background check and perhaps to do a credit record check.

We had to submit a financial statement demonstrating that we had sufficient income to pay our HOA fees.
If you are going to do a background check on a person, you have to have a signed authorization from that person I don't care what kind of association there is! Maybe that was in the stack of docs that he received from the association? I'd still move on, eegods what a horrible thought to live in a building full of these people.
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Old 03-22-2014, 02:17 PM
 
Location: Ocala, FL
3,553 posts, read 6,417,629 times
Reputation: 3233
Quote:
Originally Posted by KonaKat View Post
If you are going to do a background check on a person, you have to have a signed authorization from that person I don't care what kind of association there is! Maybe that was in the stack of docs that he received from the association? I'd still move on, eegods what a horrible thought to live in a building full of these people.
Not entirely true. I can check a person's background online for a fee without them knowing and it is not illegal. All I need is a few easily obtained personal information such as full name and current city of residence. Not heard at all.
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Old 03-23-2014, 05:10 AM
 
Location: North Carolina
1,764 posts, read 2,394,954 times
Reputation: 1873
I didn't read all the responses you received. Have you asked the association why they need this information? I would think the bank account information is related to direct payment for the monthly fees, but that's just an assumption. Unfortunately, I think some companies try to get whatever information they can because most people won't "make waves" and tell them "No."

Notwithstanding some legitimate explanation for why certain information is needed, I would just walk away. Imagine what it will be like to live there if they are this bold and nosey up front. Surely, with cash and interest, your application would be appealing to many condo associations in the area.

Good luck to you.
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Old 03-23-2014, 08:15 AM
 
4,203 posts, read 3,417,479 times
Reputation: 9009
In addition to the other things already mentioned;

1. Make sure the seller's attorney hasn't obligated you to paying for the owner's title policy which is usually paid for by the seller in Florida. It's easy to slide that one by an uninformed buyer by just checking a different box in the "Title Evidence and Insurance" section of the contract, probably page three of your contract.

2. Keep your escrow amount as low as possible in case you decide not to close for some reason.

3. Make sure you have checked "Buyer requests documents" in the condo rider. It is the seller's responsibility to provide the docs to you. Just because the attorney told you to get them doesn't relieve them of that responsibility. If they don't provide them you can back out all the way up to day of closing and get your escrow deposit refunded, IF you checked "buyer request documents" on the condo rider.

4. Don't let the seller's attorney charge you a settlement fee for this cash transaction. I'm sure he is already intending to. In the dozens of cash transactions that I do every year, the cash buyer never pays a settlement fee unless it's a foreclosure property. Title companies often try to slip it by on the preliminary HUD-1 but I politely tell them to remove it and they do, always.

It's always prudent to focus on protecting oneself in a contract and in this case, with no representation, it seems even more prudent than usual.
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Old 03-23-2014, 08:42 AM
 
Location: Lakewood Ranch, FL
5,444 posts, read 8,510,304 times
Reputation: 6578
^^^all good points but, regarding item #1, it should be noted that this is a point of negotiation and whichever party picks the title company/attorney/closer is the party who pays for the owner's title policy and associated costs. Since a negotiation is a give and take process, a deal where the purchase price is below the market value would be more likely to have the buyer picking and paying, assuming the seller is at least as good a negotiator as the buyer.
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Old 03-23-2014, 08:57 AM
 
4,203 posts, read 3,417,479 times
Reputation: 9009
Quote:
Originally Posted by bbronston View Post
^^^all good points but, regarding item #1, it should be noted that this is a point of negotiation and whichever party picks the title company/attorney/closer is the party who pays for the owner's title policy and associated costs. Since a negotiation is a give and take process, a deal where the purchase price is below the market value would be more likely to have the buyer picking and paying, assuming the seller is at least as good a negotiator as the buyer.

Agreed. I'm guessing from her posts that she's probably not aware what is normal in Florida and the attorney may have just slipped that in to his client's benefit. It's dangerous for an unrepresented party to assume that the other party's attorney has written a contract fair to both.
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Old 03-23-2014, 09:25 AM
 
10,334 posts, read 8,190,798 times
Reputation: 4551
Quote:
Originally Posted by Nell Plotts View Post
The OP is wanting to close on a co-op, not a condo. I live in a co-op and while one of the questions is inappropriate (bank account number) the others, as I recall, are not. References are very important because they want to know if the resident(s) will be good tenants. It is much more complicated to evict a co-op resident than a renter. For example, we have a tenant who has a piano. We have other pianos in the building with no problem but this guy is also hard of hearing, his piano was in the basement of his former home, and he is being a PITA when we try to manage his 'concerts'. Our board should have done more than a more than preemptory review of his references they may have been able to nip this in the bud.

The other questions go to identity and legal residency in the US, the ability to do a background check and perhaps to do a credit record check.

We had to submit a financial statement demonstrating that we had sufficient income to pay our HOA fees.

No, it is a condo, not a co-op.
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Old 03-23-2014, 09:39 AM
 
10,334 posts, read 8,190,798 times
Reputation: 4551
Right now I don't have anything, and I mean anything from the condo association. My father is trying to get financial information and copies of by-laws from the from the condo association president, since he is there at the complex and I'm not.

All I have is an "As Is Contract for Residential Sale and Purchase" contract e-mailed to me from the seller's (the estate) attorney.

It says there's a 3 day deadline to read and accept or decline the condominium association documents, but since I haven't received any, I'm assuming the 3 days starts after I receive them.

The deadline for the entire contract is March 25, I only received it on March 20th, so my understanding is that I can cross out the original deadline, and initial it, to give myself more time. But I don't know if that means that if I then e-mail that back to them that I am thereby accepting the contract, because it is an AS IS contract.

Like I said, I'm going to try to reach a real estate lawyer in that area of Florida first thing tomorrow.

I don't think anyone's trying to do anything malicious or abnormal---there have been people happily living at that condo complex for over 20 years.

I'm just inexperienced with buying a condo, especially in Florida, and I think the sellers, the daughters of the deceased former condo owner, are also inexperienced with selling a condo.
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Old 03-23-2014, 10:04 AM
 
Location: City Data Land
15,784 posts, read 9,166,163 times
Reputation: 30978
Quote:
Originally Posted by tjarado View Post
The information is for credit checks and criminal records - if they even go that far!
I gave them the info, the sky did not fall, and I have never been happier in my life.
Incorrect. How do you know who might access your extremely personal information, and when? Identity theft is so widespread nowadays an individual should be extremely careful about how he/she disseminates information. One doesn't even need to volunteer information for people to steal your identity and ruin you financially. My mother stole my identity using my SS# when I was 11 YEARS OLD! An unknown person stole my identity and took out a credit card and ran up $4K in charges when I was 25. What a nightmare that was. Yet another person forged my 86 year old grandmother's signature on a cell phone contract, the company went bankrupt, then a shady bill collector went after my grandmother for this $500 nondebt two years later. Let's not forget the Target fiasco.

When my husband and I rented our home eight months ago, there was a blank asking for our bank account number. We decided to refuse to rent the house if they insisted on that information. We asked them about it, and they told us they didn't need it; it was a mistake. We live in that very house now.

Last edited by Scooby Snacks; 03-23-2014 at 10:05 AM.. Reason: error
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Old 03-23-2014, 10:04 AM
 
12,576 posts, read 13,579,276 times
Reputation: 8914
Quote:
Originally Posted by ellemint View Post
I'm buying a condo in Florida, in cash. The seller has already accepted the offer.

The Condominium Association there says that they have to approve the sale, so I have to fill out an application.

On the application they want:

- my social security number
- bank account number
- copy of birth certificate
- copy of driver's license
- previous address etc
- references
- and two more pages of information

And an interview. I don't even live in Florida yet, so I'm assuming a phone interview will suffice. I've already met some of the condo association members when I visited, so it's not like they haven't met me.

I'm paying cash. The previous owner's estate has already accepted my offer. I'm obviously not insolvent. THe monthly condo fee is low and I would be responsible for my own utilities. It's not a rental property. So, much of this information seems unnecessary and also none of their business, and leaving me at risk of identity theft if the information gets in the wrong hands. They seem very casual about their record-keeping and I have no assurances about how they would store this information.

For example, I don't mind if they phone my bank and my bank is allowed to tell them I have a bank acccount and enough money to cover say a year or two of condo fees, but to provide them with my account number?

This is not a professionally managed property management company but a homeowner's association, who do not seem to be very good at record keeping, given that they cannot seem to come up with any of the documents I am supposed to be supplied with. When I asked for a copy of the by-laws and rules they said "can't you get that from the previous owner?" --- it's an estate sale and she's dead.

I had a condo in Kentucky for years, and I never had to go through any of this B.S.

Is this typical, does anyone know? Is it even legal?
I live in condo in NC and the sentence I bolded would alone be cause enough for me to walk away.
On the other hand you could retaliate by demanding the HOA's financials.
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