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Old 03-24-2014, 06:57 AM
 
Location: Ocala, FL
3,632 posts, read 6,476,893 times
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Quote:
Originally Posted by FloridaHappy View Post
In Marion County, Florida, the HOA documents are available online through the county clerk's office, free of charge. I'm sure it's the same in other counties.
Agreed. In many counties the information is available online free. Normally, I usually contact a title agency that I work with to provide the documents. In my area, the HOA/COA documents are normally provided by the seller's agent before closing. In Florida, Statute 718 specifies that COA documents must be provided within a set period of time to allow the buyer to review and/or withdraw an offer.
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Old 03-24-2014, 07:17 AM
 
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Quote:
Originally Posted by dontaskwhy View Post
Agreed. In many counties the information is available online free. Normally, I usually contact a title agency that I work with to provide the documents. In my area, the HOA/COA documents are normally provided by the seller's agent before closing. In Florida, Statute 718 specifies that COA documents must be provided within a set period of time to allow the buyer to review and/or withdraw an offer.

So in my case should I contact the seller's attorney (since they don't have a real estate agent), and ask that he get those documents to me? Instead of my old Dad running around trying to get them?
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Old 03-24-2014, 09:30 AM
 
10,334 posts, read 8,220,416 times
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Quote:
Originally Posted by ellemint View Post
So in my case should I contact the seller's attorney (since they don't have a real estate agent), and ask that he get those documents to me? Instead of my old Dad running around trying to get them?
I called the seller's lawyer and he said that if we have difficulty getting the condo association disclosure documents to e-mail him and he will get the seller to work on it. So at least that helps.

I am beginning to see why real estate agents are useful and necessary.
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Old 03-24-2014, 11:03 AM
 
Location: Portland, Oregon
10,214 posts, read 17,182,373 times
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Keep in mind the fact that you are buying shares in an apartment building. I doubt that their HOA documents are on file at the county.

The seller (through their lawyer) has an interest in this sale going through, because they are shareholders they have leverage.

Ask for more than the 'official' documents (rules, by laws, articles of incorporation), budget, financial statement. A copy of letters to the board for the last year can be very instructive. You want a copy of board minutes for the last 12 months but keep in mind the fact that much business may be conducted in executive session which is not included in the minutes. As I mentioned earlier you want to see the reserve study and the state of reserves.

Don't buy if they aren't conducting the co-op's business in a businesslike way. One of the common problems is that older owners don't want to invest in the future needs of the building.
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Old 03-24-2014, 12:57 PM
 
10,334 posts, read 8,220,416 times
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Quote:
Originally Posted by Nell Plotts View Post
Keep in mind the fact that you are buying shares in an apartment building. I doubt that their HOA documents are on file at the county.

The seller (through their lawyer) has an interest in this sale going through, because they are shareholders they have leverage.

Ask for more than the 'official' documents (rules, by laws, articles of incorporation), budget, financial statement. A copy of letters to the board for the last year can be very instructive. You want a copy of board minutes for the last 12 months but keep in mind the fact that much business may be conducted in executive session which is not included in the minutes. As I mentioned earlier you want to see the reserve study and the state of reserves.

Don't buy if they aren't conducting the co-op's business in a businesslike way. One of the common problems is that older owners don't want to invest in the future needs of the building.

It's not a co-op. It's a condo.

Yes I can understand older people not wanting to invest in future needs of a building, but surely there have to be some laws and rights.
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Old 03-24-2014, 01:23 PM
 
Location: Lakewood Ranch, FL
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Quote:
Originally Posted by ellemint View Post
It's not a co-op. It's a condo.

Yes I can understand older people not wanting to invest in future needs of a building, but surely there have to be some laws and rights.
Condo associations are required to budget and collect for reserves for higher cost deferred maintenance items but think of this as a default. If the association (which is made up of all the unit owners) votes to reduce or stop the reserve funds, they are allowed to do it. Listen, maybe all these owners have money in the bank and they'd rather invest it or hold it under their personal control than to have it in an account held by the association. That's fine for them but is it fine for you? Are you able or prepared to come up with $2K, $5K or whatever is needed when the time comes? More importantly, you are thinking of this as a shorter term ownership situation, right? Remember, just because you are willing to trust your Dad and look the other way on these issues doesn't mean that a normal buyer will. Unless this place is going to be viewed as exceptional (i.e. beautiful or cheap) when you try to sell it, you are going to find 99% of the buyers are going to be concerned about no reserves.
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Old 03-24-2014, 06:03 PM
 
Location: All Over
4,004 posts, read 4,790,932 times
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This is why many people hate and refuse to live in condos, associations, co-ops, because other people have a say waht you can do with your property and can ask you for info like this or refuse to allow your sale go through. My question is even if you somehow talk your way out of giving this do you even want to live somewhere where some guy in his freetime afterwork can play im mr important and throw his condo power around?
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Old 03-24-2014, 06:59 PM
 
Location: Ocala, FL
3,632 posts, read 6,476,893 times
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Quote:
Originally Posted by ellemint View Post
It's not a co-op. It's a condo.
.....and a condo is not an HOA, it is a COA. The designations are similar, but not the same.
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Old 03-25-2014, 06:42 AM
 
10,334 posts, read 8,220,416 times
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Quote:
Originally Posted by bbronston View Post
Condo associations are required to budget and collect for reserves for higher cost deferred maintenance items but think of this as a default. If the association (which is made up of all the unit owners) votes to reduce or stop the reserve funds, they are allowed to do it. Listen, maybe all these owners have money in the bank and they'd rather invest it or hold it under their personal control than to have it in an account held by the association. That's fine for them but is it fine for you? Are you able or prepared to come up with $2K, $5K or whatever is needed when the time comes? More importantly, you are thinking of this as a shorter term ownership situation, right? Remember, just because you are willing to trust your Dad and look the other way on these issues doesn't mean that a normal buyer will. Unless this place is going to be viewed as exceptional (i.e. beautiful or cheap) when you try to sell it, you are going to find 99% of the buyers are going to be concerned about no reserves.
I haven't seen their financial statement yet, so I'll know more when I do.

I supposed I could e-mail the condo association president and ask him for a record of past assessments, maybe over the last 5 years? THat would be fair wouldn't it?


I'm not as convinced about the value of reserves as some of you are. My last condo had about $180,000 in reserves for a complex of 90 units. When it came down to getting new roofs, they only took about $10,000 out of reserves and the rest was levied as an assessment that for me ended up at about $2,300. The board didn't want to touch the reserves even though that's what they are there for! Same thing happened when they re-paved and mended the driveways and roads throughout the complex --- another assessment.
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Old 03-25-2014, 06:43 AM
 
10,334 posts, read 8,220,416 times
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I was able to locate the declaration for this condo complex online on the County Clerk website. I'm not sure if that is the same as by-laws and rules and regulations.
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