Help plz: Condo Association reserve and other info (documents, agent, fee)

[gus030]

Hi all

I've been searching for a condo for the past few months and found one i really like, thinking of putting an offer in.

I've asked my real estate agent for info on the condo association and a few things concerned me. Should these be deal breakers?

-Asked for copy of Condo Association meeting minutes, and the association manager said no because it had private info on some of the owners. (real estate agent said we can try to ask again)

-Only $8,000 in Condo reserve fund. Last year they used $142,000 for roofing projects. (this seems concerning)

-1 assessment in past 10 years and none planned in the future

-136 units, of which 28 are rented. 3 are deliquent in association fee payments

-Association fee is 300 per month for 1brs and higher for 2brs

-Copy of condo bylaws: i was told it is usually transferred from seller to buyer, if not it is $50 fee

-

[middle-aged mom]

The seller should be able to produce the necessary documents. You should also ask for a copy of this audited financial statement for the past two fiscal years and a copy of the budget.

How much of each monthly assesment is allocated for rebuilding reserves?

Assessment delinquencies are common. In extreme case, delinquencies can deplete reserves and/or impact ongoing maintenance.

It sounds like this association voted to use a substaintail portion of their reserves for roofing projects instead of a special assassment for a part of the project. Were these projects repairs or replacements? Was this some buildings or all buildings? It matters.

[MMichelle]

Here in Colorado the governing documents, financial documents and minutes for the past 6 months of any HOA meetings - are part of the review process. - it's state statute here! Even if it's not law in your state your contract to purchase (offer to purchase) should include a review period for you to review the HOA documents, and the contract should state that any costs to obtain such documents shall be paid by the seller. You should want to have an review and objection period for the documents - just as you will have for the property.

Just from what you have said - only 3 accounts behind in payments isn't bad at all. But to truly evaluate the financial status of the HOA you'd need to review all the financial statements (monthly balance sheet, annual budget, most recent audit)