1/30/17

Buying a Condo 101 : Important Considerations

Important Factors for Real Estate Investors
 

Buying a Condominium Home

Caveat Emptor : “Let the Buyer Beware”

Alabama & Florida are ‘buyer beware’ states that require buyer prudence.

Homeowner Associations (HOA)

HOA members are subject to special assessments that can result in significant financial liability.

Common Property

Poorly maintained components such as the roof, building envelope, elevators, etc. can result in special-assessments of $1000’s for HOA members.

Legal

Legal issues such as lawsuits, foreclosures, or unpaid assessments can expose owners to legal fees and monetary judgements against the HOA &/or the Board of Directors.

Financial

The HOA must have an adequate Reserve Fund to cover the cost of the projected repair/replacement of the common property.
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Home Inspection & Home Warranty

- A Home Inspection can save you a lot of money.
- A Home Warranty gives you peace of mind.

Investing in resort real estate can get complicated – contract negotiations, tax-exchanges, income-analysis, HOA issues, etc. must be considered.

More details: Buying a Condo 101
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