If you are considering buying a condominium, be aware that what is “yours” only includes the sheetrock on the walls, the flooring, and appliances in your unit. Everything else, the wall studs, exterior walls, windows, terrace, roof, electrical, plumbing, AC and heating systems, parking garage, recreational facilities, and landscaping belongs to the condominium as a whole, of which you own only a fractional interest .
The condo owners collectively are responsible for maintaining the premises. Know what the assessments will be, and what power the Board of Directors has to raise them and level ‘special assessments’ for capital projects such as replacing roofs or renovating pools. These can run into hundreds of thousands of dollars. In other instances, the Declarations may require half or more of the owners to approve increases in assessments or capital projects. Owners’ resistance to paying additional fees can be an obstacle to essential maintenance, degrading the value of the property as a whole and each owner’s unit.
The operation of a condominium is controlled by the “Declaration”, or Master Deed that is written by the developer of the project. Day-to-day business, maintenance, and financial decisions are made by the homeowner’s association (HOA) that a Board of Directors heads up. The Board is made up of condo owners who serve as volunteers. It is a huge responsibility to maintain a multi-million-dollar property. Most of the owners do not want to serve on the Board and it is not unusual for less than competent people to end up in control. This will create problems. In purchasing a condo unit, you are buying ‘into a community’. Take the time to get to know who your neighbors and the Board of Directors are. Are they good people? If not, run, don’t walk away. If you are already an owner and do not like how the Board operates, sometimes the only solution is for you to serve.
These are some of the downsides of purchasing a condominium. Don’t jump in. Do your due diligence, especially when learning about the financial state of the project.
If you are having difficulties with your condominium homeowner’s association contact the Law Office of Elliott Klein for a consultation.