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Old 11-09-2014, 10:03 AM
 
Location: Floribama
18,929 posts, read 43,254,623 times
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Does anyone here own one of these? I'm thinking of inquiring about one as a second home and also using it as an overnight vacation rental (rentals are allowed there). This is a neighborhood of small octagon "houses" built in 1986 that sit roughly about 50'-75' apart. The attractive part about this place is that the lawn maintanance would be taken care of while I'm gone, and the fact that there's community water rather than using a well. The HOA fee is $130 per month so I'm assuming exterior maintanance would be the responsibility of the owner (HOA covers clubhouse and pool).

Since I wouldn't actually own the lot, I wonder what would happen if my unit were to burn down, and I didn't want to rebuild. Could I sell my "share" back to the HOA, or would I be forced to rebuild? What other downsides are there to a community like this?

Also, I did find the phone number the to HOA, is it acceptable to call and ask questions without going through a realtor? Would they even tell me anything? I didn't care for the realtor I spoke with because she really didn't seem knowledgable on the property, she didn't even know the lot wasn't included with the unit until I told her.
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Old 11-09-2014, 11:25 AM
 
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The first thing you have to find out is the how the master insurance policy on the complex works. You're working under the assumption that you would own the entire structure and would be leasing the land.

That may not be how it works. This is, after all, a condominium, not a land lease. The master insurance policy may be for walls out for every unit in the entire complex, with the owner responsible for insuring wall in. This you have to find out.

You have the right idea that you need to speak to the HOA and get hold of the condo documents to see how the complex is set up and how their insurance works. The documents will also tell you what the monthly unit charge covers. Assume nothing until you see it in writing.

Once you figure out who insures what, then you can ask the HOA your question about total loss from fire damage. That's an interesting question.

Also keep in mind that condo association may charge you for the condo documents, sometimes a hefty sum. If you've signed a buyer's agent agreement with a real estate agent and that agent has actually shown you a unit, then you might want to work through that person. If not, I'd go ahead and contact the HOA on your own.
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Old 11-09-2014, 12:06 PM
 
Location: Portland, Oregon
10,987 posts, read 20,464,031 times
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We owned condo "Ranch Cabin" in Sunriver, OR. Stand alone residences, pool. The assn. took care of the pool, grounds and exterior maintenance of the cabins. The assn. purchased insurance, as I recall, for the whole kit & caboodle. Liability for the pool was a major concern.
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Old 11-09-2014, 12:13 PM
 
8,539 posts, read 12,273,864 times
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Just double check to make sure what the condo HOA fee covers. Stand-alone condo units are called site-condos in Michigan and oftentimes lawn maintenance isn't even included in the HOA fee. Here, the homeowner is responsible for insuring the entire dwelling in a site-condo situation. If it burns down and you don't rebuild, whether you have marketable title to the unit's site may vary depending upon the state and the local condominium documents. (That's an interesting question, though. In the site-condo development I'm most familiar with, I think an owner would be able to transfer ownership of the "site"...but I'm not sure.)
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Old 11-09-2014, 12:59 PM
 
Location: Denver CO
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Agree with everyone that you need to get the docs for that development to answer your questions. However, I strongly doubt that you'd be able to sell your unit back to the HOA, whether it's intact or if it's burnt down. The HOA doesn't own the units and isn't going to assume the responsibility for owning yours just because you decide you no longer want to own for any reason. My guess is that you'd have the responsibility to rebuilt from the insurance proceeded, as an empty lot would lower the value for the whole development.
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Old 11-09-2014, 01:59 PM
 
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Agree with all. We'd need more info for more specifics.

I'd like to add there are many ins and outs to this and you need a realtor who knows what they're doing. You call these units condos...so you know they are condos for certain? There are communes here and there where the form of ownership is different.

One additional thing.....many HOAs have their Covenants, Restrictions...which are part of the land records ...online. Also their bylaws. However, some feel this is for owners and potential owners (like with a contract) only. Your new realtor can ask the realtor of the seller to get the current ones to her. These would include several months of meeting minutes and an up to date financial sheet.

You want to know what those fees cover and what the reserves are because condos mean you own the inside and the outside is group funded from the reserves gathered from saving that condo fee up. Units the age you have there will need to be watched for siding and roof repair. Same with any aging amenities. You need to know where this is coming from. You need to know if there is a special assessment coming in the next year or if the community is in the middle of collecting one, etc.

Realize "condo" is a form of ownership. It can be an apartment style, a townhouse, a duplex or even a single family. Form of ownership requires knowing who pays for what.
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Old 11-09-2014, 03:10 PM
 
51,587 posts, read 25,515,803 times
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It would be a rare realtor who knew the ins and outs of any specific association.

Try to see if you can speak to the Board president. That person should be able to answer your general questions and may even direct you to where you can find their documents for more specific questions. Many associations keep their documents online.

As to the association buying your land back, that is unlikely. Most associations don't even want to foreclose on properties that are not paying dues. They are not in the real estate business and it sucks up a lot of community resources that needs to be devoted to maintaining the common property.
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Old 11-09-2014, 03:57 PM
 
5,048 posts, read 9,553,066 times
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Quote:
Originally Posted by GotHereQuickAsICould View Post
It would be a rare realtor who knew the ins and outs of any specific association.

Try to see if you can speak to the Board president. That person should be able to answer your general questions and may even direct you to where you can find their documents for more specific questions. Many associations keep their documents online.

As to the association buying your land back, that is unlikely. Most associations don't even want to foreclose on properties that are not paying dues. They are not in the real estate business and it sucks up a lot of community resources that needs to be devoted to maintaining the common property.
I'm talking about the ins and outs of what a condo is. and at least wether a listing includes the outside or not.
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Old 11-09-2014, 04:43 PM
 
51,587 posts, read 25,515,803 times
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Quote:
Originally Posted by cully View Post
I'm talking about the ins and outs of what a condo is. and at least wether a listing includes the outside or not.
And I'm talking about how to find out what the situation is with this community.

Call the Board President and ask.
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Old 11-09-2014, 05:01 PM
 
Location: Floribama
18,929 posts, read 43,254,623 times
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I will try to call the HOA and get some answers, I just didn't know if that was common practice to do that. I know the water dues aren't included in the HOA dues, but maintenance of the common grounds and pool are. Supposedly pets are okay according to the realtor, but I'd want to hear that from the HOA myself (and see in writing).

For a primary residence I'd never consider one of these, or an HOA period, but for a vacation home there are parts of it that make sense (even though I couldn't care less about a pool). I do wonder though what happens when the structures are severely dated and at the end of their useful life. Are they bulldozed and then the land sold and divided among the residents?
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