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Maybe someone in NJ can shed more light on this but I would want the community manager to tell you where in the condo docs (that I assume you received and reviewed) it says that these charges are proper and authorized. Sorry, just because they've been doing it for years is not a sufficient reason to justify the charge. Just my opinion and suggestion....
i did additional research (i didn't read through the entire condo thing which was hundreds of pages long) and much to my embarrassment I believe i found the clause.
i want to thank everyone for helping and also for the what should have been obvious suggestion to read the condo thing.
here is a screenshot. from what it looks like, it seems like there are two contributions.
i called the HOA management and she was nice but basically told me that this is normal and people have been paying it for five years that she's worked there. additionally she says this is the first time someone's actually called to ask why there are two or what they mean. so i was a little taken about that. i was polite of course.
If they have to do this every year, that tells me one of two things. One, they are bad at manganing their money, or two they don't charge enough monthly to cover the yearly expenses. What happens when they need to replace something major, like the roof or the parking lot? This sounds like a bad complex, I would back out if I had the ability to
If they have to do this every year, that tells me one of two things. One, they are bad at manganing their money, or two they don't charge enough monthly to cover the yearly expenses. What happens when they need to replace something major, like the roof or the parking lot? This sounds like a bad complex, I would back out if I had the ability to
The times I've encountered it, it's a one-time thing for new owners, not every year for existing owners. It may not be the case in this instance but it's not that unusual to run into this with newer complexes that may have been completed during/after the bust of 2006/07. Developers who finished their projects during that unfortunate time may have had unsold units sitting on the market for a long time with the developer paying reduced or zero monthly fees for the unsold units. That situation created associations with dangerously low bank balances. This one time contribution is a way for these associations to catch-up their reserve and regular accounts as they transition.
If they have to do this every year, that tells me one of two things. One, they are bad at manganing their money, or two they don't charge enough monthly to cover the yearly expenses. What happens when they need to replace something major, like the roof or the parking lot? This sounds like a bad complex, I would back out if I had the ability to
What makes you think they do it every year? This is a closing cost (i.e. one time charge when purchasing a unit) and it probably helped them establish adequately funded reserves right from the start. That is the sign of a well started, well run association. It also helps them keep their monthly or quarterly costs a little lower because they didn't have to rely solely on fees to fund the reserves.
What makes you think they do it every year? This is a closing cost (i.e. one time charge when purchasing a unit) and it probably helped them establish adequately funded reserves right from the start. That is the sign of a well started, well run association. It also helps them keep their monthly or quarterly costs a little lower because they didn't have to rely solely on fees to fund the reserves.
Quote:
Originally Posted by prettypleaseplease
i called the HOA management and she was nice but basically told me that this is normal and people have been paying it for five years that she's worked there. additionally she says this is the first time someone's actually called to ask why there are two or what they mean. so i was a little taken about that. i was polite of course.
The way I read that was, that everyone pays it every year. Unless I am misunderstanding her post.
I can see the confusion but I am 99.9% sure it should read: For the entire time she (the lady at the management company) has been working there (5 years), every new buyer has been required to pay the fees.
The position that new owners should be required to pay an additional $5K in fees seems unjustifiable and discriminatory to new owners. However, the HOA probably has a logical, legal (and financial) basis for this since it's an ongoing practice and included in the condo docs.
You are probably too far along in your closing process to renegotiate your sale terms. The fact that the owner, realtor/s or HOA did not loudly ensure you were made aware of this, plus the fact it was not reported as part of your closing costs, sounds incompetent, if not underhanded, but, there's probably nothing you can do about it at this point.
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