Here's one good reason to consider a resale condo rather than a brand new condo in today's market. A resale condo has a track record and clear and obvious financial standing as opposed to a brand new condominium. I found this article
What is going to happen to the values of condominiums when the homeowners association goes bankrupt? We hear about foreclosures, but those are just the tip of the iceberg. As developers begin to walk away from unfinished communities, or refuse to continue to contribute to the HOA many condo owners are going to be facing enormous costs to continue to maintain their common elements.
Is your appraiser examining the condominium budgets or doing the research necessary to determine if there is any pending or ongoing litigation? Make sure your buyers are getting a sound investment and look carefully at not only the condo, and it's market but the health of it's Association.
News-Press.com
Condos cause conundrum
By DICK HOGAN • dhogan@news-press.com • September 25, 2008Unit owners resist paying extra expense
Buzz up! The developer of half-built Prentiss Pointe at Winkler and Summerlin roads in south Fort Myers wants the 50 condo owners to pay for all the community's operating expenses.
They're fighting back with protests to the state Division of Condominiums, saying that developer Prentiss Pointe Ltd. is obligated to pay its share of the expenses.
Gary Howe, managing partner of Prentiss Pointe, couldn't be reached for comment but condo owner Marilyn Boyer - who has the only non-developer seat on the condo association board - said he's told residents he's broke and can't pay. Click here for the rest of the story
Kathleen M Bryce
St.Cert.Res.REA RD-4424
http://www.leecountyappraisals.com
appraiserkat@earthlink.net
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About the Author --- Will Nesbitt is the principal broker of Condo 1 Alexandria / Will Nesbitt Realty LLC. Will specializes in condos, townhouses and single family residences in Alexandria, Arlington, Fairfax County, Crystal City, and Kingstowne. Will resides in Belle Haven Estates just outside Alexandria VA in Fairfax County. |
Will, Therre are many reasons to buy resale whether or not it is a condo - having your deposit with a builder is risky, Karen
The builder I am representing in Belmont Bay puts all of their deposits with a title company instead of holding them in their own general funds. The other issue with HOA/Condo Associations these days in the number of special assessments which are being levied do to non-payment of dues.
I could be wrong but in Canada a trust account is required. When the corporation becomes a entity on its own. the fees must be paid , if not a registered lean is always filed. In a sale the Condo corporation is the first one to get paid before anyone else. Hence it is impossible for a condo to go bankrupt ( in Canada ). Just to confirm can a Canadian Realtor correct me on this one if im wrong.
This is how I handled it when I managed condominiums.