Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I think the respondents to this post are well-meaning, but over-reacting quite a bit.
The information is for credit checks and criminal records - if they even go that far!
Much is a mere formality; my "interview" for a SoFla villa in a 55+ community was over the phone and really was a sales pitch for how wonderful the community activities were!
I gave them the info, the sky did not fall, and I have never been happier in my life.
Either do what they want, respectfully ask for explanations, or walk. (or "accidentally" switch the 2nd and 3rd digits of your ss#!?)
Is it really a good idea to lawyer up and raise cain before you even have a contract?
Remember, these folks are your future neighbors.
Good points. I don't mean to "lawyer up" as much as just get a lawyer to go over the contract and application form, explain things to me and advise me of how to proceed and warn of any red flags.
Unless your Dad attends the board meetings, I'd still want to know if they are looking at future assessments and I'd want to know how many unit owners are behind in their payments, for how much, and whether they expect to be able to collect. I'd also want to know about their reserves. Buildings need painting, roofs get replaced, sometimes windows, balconies, roads, etc. do too. If the reserves aren't adequate, it's assessment time. I know you just want to buy the place but sometimes a deal isn't the deal it is supposed to be. I'm not trying to talk you out of anything or into anything, for that matter. But, just like anything else, you need to know what to look for or ask about so you don't end up getting screwed....or screwing yourself! BTW, some condos can be located in an HOA, too. You might want to check...
He does attend board meetings, when he's there, which has only been in the winters for the last 3 years. I don't believe anyone is behind in their payments, and he seems to think the condo is in decent shape financially. His late girlfriend was on the board, and she also used to be a professional condo property manager, not for that condo complex but for others.
I have had a difficult time finding out about any reserve fund. My Dad says they don't have one (I know some of you are going to be jumping up and down at that one), but he says they just keep enough in their budget for expenses. Whatever that means. I will try to get a copy of the budget; maybe I can ask the seller's lawyer if he has it.
It's good that he attends some meetings and it is good that she was a property manager. I suppose you can take some small comfort from that but I would suggest that you should be extremely wary of any condo that has no reserves. In fact, if you look at the law that was given to you above, and look in the section under Bylaws, Annual Budget, you will see in the section that discusses reserves that the legislature was so concerned about this aspect of the condominium law that they decided it should be all caps: WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
Use C-D and post in the appropriate local forum to get a recommendation for a Florida real estate attorney (very important) whose office is in the same area. Explain it all to them and see what they suggest. The easy thing is to give in to your Dad because you have an emotional component to this decision but this is probably a chunk of your savings and you have an obligation to yourself to not put yourself at financial risk. There may not be any risk--or there may be too much.
One can debate what an association can and cannot do. In the meantime if you do not act, you might well lose the place. If you want the place then my suggestion is hire a local real estate attorney to lead you through it all. Maybe even one that has worked with this association before of for that matter, one who lives there. Do not make it appear adversarial but just my lawyer is helping me so we can do this smoothly and properly.
Once done and you are an owner you might could work to bring change about.
As has been said. Be leery of an association with no Capital Reserves. This is a sign that they will have to assess if an issue arises.
A buyer can request a copy of the Condo Association financials. They cannot request background information of the current owners/occupants unless they pay for such a report from an independent source.
Hi dontaskwhy
Yup you're right about the financials. I knew you can ask for the association financials. I own two Townhouses in HOAs and I was never asked to reveal that personal information about myself or finances. If I was asked to I would ask the same thing back. Only fair I know as much about you as you know about me.
There are people lining up to buy this condo, it is an extremely good price, so if I back out no one will care.
I have no realtor, broker, or attorney, but it sounds like I should consult a real estate attorney.
Sounds like the HOA is attempting to take advantage of the demand. That being the case, you should probably just go ahead and close ... and ignore the HOA. (What can they do? ....Come to your closing and stop the proceedings?) -- You might want to involve an attorney to do your closing and inform him of the situation, in the event something comes up.
Sounds like the HOA is attempting to take advantage of the demand. That being the case, you should probably just go ahead and close ... and ignore the HOA. (What can they do? ....Come to your closing and stop the proceedings?) -- You might want to involve an attorney to do your closing and inform him of the situation, in the event something comes up.
First, in the OP's situation in Florida an HOA and a COA are not the same entity and are governed under different legislative statutes. The OP is dealing with a COA and not an HOA.
Secondly, without approval of the COA they can prevent the title work from proceeding to closing. Ignoring the COA would definitely hold up the closing. I have assisted with the sale of codo properties in FL and this is a fact.
I do agree that a Real Estate attorney should be consulted by the OP.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
