Pitfalls associated with buying a property governed by a homeowners or condominium association

Many pieces of real estate, especially those developed in the last 20-30 years, are governed by a homeowners or condominium association. These associations have control over modifications made to your property and are also responsible for maintaining common areas and handling expenses shared by all owners in the development. Many associations are struggling financially due to the failure of property owners to pay their dues, the bankruptcy of a developer who still owns some of the property and the like. Before agreeing to purchase a property which is governed by an association, you should insist upon full disclosure of its condition. Get the budget and review it to see if the association is solvent and if it has built up adequate reserve funds. Find out if the association is involved in litigation with any contractors or unit owners. Review minutes from the association’s meetings for at least the last year to see if any special assessments are being contemplated or if the board members have concerns about any serious problems. Our firm can help you obtain and review association documentation to make sure you do not make a purchase that you regret. Feel free to contact us to see how we can assist you.