Condominium or townhomes are traditionally popular with younger single buyers, those just starting a family as well as seniors who may be retired or just empty nesters looking for a smaller place. Low maintenance, access, convenience and amenities are draws. However, in current market conditions, the generally lower priced condos and townhomes are attracting home buyers that can’t find single family homes in their price range. Knowing about the Home Owners Associations (HOAs) becomes a huge factor in the decision to buy a particular unit.
Here are some notes to consider.
• Governing documents (also called Declaration and Bylaws or CC&Rs — Codes, Covenants & Restrictions).
• Rules, Regulations and Resolutions that are not found in the Governing Documents.
• Specific policies relating to Pets, Parking, Collections and Rental Restrictions.
• Financial statements for the last 12 months including annual budget.
• Reserve study showing schedule for major repairs and funding level of reserves.
• Any special assessments coming up soon? If so, how much?
• Current percentage of delinquencies (more than 5 percent means big problems).
• Is the HOA involved in litigation as a defendant or plaintiff? If yes, get details.
• Board and Annual Meeting Minutes for the last 12 months.
• Insurance coverage’s carried by the HOA – check your lender’s policy
• Newsletters for the last 12 months.
• List of architectural violations the subject home might have.
• Key contact information.
Sometimes a good ole Googling of the association can provide some insight and history. As always I can help with finding you the right home when buying or assist or assist you with selling your home.