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Thursday, December 29, 2011

Check the Association Finances Before You Buy into a Community

As I was showing condos yesterday in Viera's Heritage Isle community one of the things I advised my customer was to make sure to check the association finances in any condo complex she considers a purchase.

Her response was typical of many buyers…"why?"
  • One of the appealing qualities about living in a condo community is the amenities.  Most complexes have pools, fitness rooms, clubhouse facilities and the like for the owners use (common elements).  These facilities are not cheap to maintain.
  • In a condo building/complex there are routine expenses like upkeep, electric, landscaping, gates).  
  • The association is usually providing property insurance and some services like basic cable, pest control or water/sewer in some cases.  
  • There are usually professional management expenses.  
  • The association is hopefully maintaining appropriate levels of funds for the inevitable roof replacement, painting, (fund for reserves) etc.
  1. The association belong to the owners.    
  2. The association obligations belong to the owners.  
Get too many units foreclosed, investor owned or with delinquent dues and then an association could be in real trouble if prospective buyers are going to require financing!

As a real estate agent I am not an attorney or CPA.  If you have questions about a condo association financial matter or the rules and By-Laws consult an appropriate professional.

If you are relocating to Brevard County or possibly considering a condo for a second home, give me a call or send me an email.

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