Real Estate Investing
Buying a Condominium 101
Beach Resort Property
“Let the Buyer Beware“
Homeowner Associations (HOA)
Condo owners are mandatory members of the Homeowner Association, the Board of Directors (BOD) have the legal authority to issue special assessments & fines, place a lien on a condo, and even foreclose.
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.
HOA members own an undivided share of the common property and are responsible for an equitable portion of the liabilities; poor maintenance of the complex can expose condo owners to $1000’s of repair expenses.
HOA’s should periodic reserve studies to determine the physical condition of the property, to insure an equitable reserve fund that meets the future needs of the community.
Condo owners can be liable for the actions of the Board of Directors, 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 by the BOD.
An Inspection can save you money by identifying defects, and documenting the age, condition & life-span of the major components.
Peace of Mind
A Home Warranty offers peace of mind, it just makes sense for everyone – no one knows when a component will fail.
Always work with someone that will protect your interest, and has experience in the various issues of resort property.
I’m a consumer advocate with a lifetime of real estate experience, if you’re interested in buying resort property, I can help – contact me anytime.
· AL Lic. Real Estate Broker
· AL & FL Lic. Home Inspector
· ASHI® Certified Home Inspector
· FL Lic. Community Assoc. Manager
· Florida Wind Mitigation Certificate
· Cert. Manager Community Assoc., CAI
· Reg. Environmental Property Assessor, NREP
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