Resort Real Estate

Investing in Resort Property

Condominium 101

Beach Real Estate · Condos

Caveat Emptor – “Let the Buyer Beware”
 

Homeowner Associations (HOA)

Condo owners are required to be members of the community Homeowner Association, and are subject to special assessments by the Board of Directors (BOD). HOA’s have significant legal authority when members break rules, or don’t pay their share of expenses – the BOD can issue fines, place a lien on the property, and even foreclose.
More Info: Homeowner Association 101

Lifestyle Restrictions

The Covenants, Conditions & Restrictions, and any rules implemented by the BOD, restrict the use of a condominium, e.g. decorating, rentals, pets, visitors, use of common areas, etc.

Common Property

HOA members own an undivided share of the common property, and are responsible for a equitable portion of the repair and maintenance expenses; inadequate maintenance of the roof, building-envelope, elevators, etc. can cost HOA members $1000’s in unexpected expenses.

Legal Issues

Lawsuits involving the HOA, or the Board of Directors, can expose condo owners to significant financial liability. The HOA should have a Directors and Officers Liability Insurance Policy payable to the Association, as indemnification for losses resulting from negligence, fraud, or conflict of interest.
More Info: Board of Directors 101

Financial Planning

Poor planning by the BOD can result in HOA members funding the repair and/or replacement of the common property via “special assessments.” HOA’s should have a reserve fund to ensure the equitable allocation of expenses for the repair and replacement of the common elements.

Property Defects

A Home Inspection can save you money by identifying defects prior to closing, and by documenting the age & normal life-span of the major systems.
*The Seller or Agent should reimburse you for the cost of an inspection.

Peace of Mind

A Home Warranty for a condo provides peace of mind, it just makes sense for everyone – no one knows when a component will fail.
*The Seller or Agent should provide you with a warranty.

Experience Matters

Always work with someone that will protect your best interest, and has experience with the various issues of owning resort property.

If you’re interested in buying a condo, I’ll make sure your best interest is protected –  contact me anytime.