Buying a condo or townhouse
When purchasing a condo/townhouse consumers need to evaluate the entire scenario.
Most complexes charge a one time association fee to set up your account. How much is it? A set amount? or a percentage? Most associations charge a monthly maintenance fee.
Make sure you get this information from your agent and find out what is included.
What do your monthly dues typically include?
- Ground maintenance / gardeners
- Trash pick-up
- Insurance: How much coverage and what does it cover? Does it include Flood Insurance?
- Professional management fees
- Water, Sewer, Cable
- Pool, spa or fitness centers
- Roads and sidewalks
- Assigned parking (and if so, how many spaces?)
- Docks is there a separate fee for a boat slip?
- Beach acess, Cabanas
- Gate access
- Any assessments due or to come?
How do the fees compare to other condos/townhouses in the area?
Once you make an offer, It is always a good idea to speak with the association yourself You need to assess How Financially Sound the Homeowners Association is.
Try to get copies of:
- Covenants, Conditions and Restrictions
- By-Laws and Regulations
- Meeting Minutes for the last year
- HOA Financial Statement
This requires hours of reading but it will help you get a handle on what's in store for you.
These documents will tell you about:
- Special assessments being planned to address deferred maintenance.
- Capital improvements planned
- Amount of cash reserves
- Whether the association is being or has been sued
- History and likelihood of dues increases
Make every effort to educate yourself so you know what your buying.