Condominium Living - Is it Right for You?
One of life's exciting challenges is deciding on what type of
home ownership fits best. First time buyers are often trying to
decide on a single-family starter house, townhouse or a condo?
Other existing homeowners decide they are tired of maintaining
their house and yearn for someone else to do the upkeep allowing
plenty of time to explore their interests. Yet others may be
quite happy with their existing house but have their eye on a
well-deserved vacation condo on the beach, waterfront or the
countryside.
Before writing a check and putting their names on a contract to
purchase a condo they may wish to consider the benefits and
drawbacks of a communal lifestyle and what it means to live in a
condo. Condominium Association By-Laws, Documents and all
Amendments must be carefully reviewed. They are often large and
cumbersome documents with many amendments. Buyers have a limited
number of days as specified in the contract to review and accept
or decline and rescind the contract. The so-called "Condo Docs"
are in essence the rules and regulations everyone agrees to live
by when living in a particular condominium community. The condo
documents will specify if pets are allowed and restrictions on
the number, types, weight and acceptable breeds. Common condo
property will be described in detail as well as who is
responsible for upkeep. Restrictions on what can be done to the
inside of the condo will be spelled out. Carpeting may be
required on floors above ground level (except kitchen). If not
specified tile may be allowed anywhere. Remember flooring can
become a significant noise factor for anyone living on lower
floors in a condo. Don't under estimate the annoyance factor.
Violations of the condo rules and regulations can be handled
differently depending on the strength of the condo association
board of directors. Lesser violations usually begin with written
warnings to the condo owner. Violations that persist may result
in monetary fines or legal action. A prospective buyer should
understand the due process for an inconsiderate renter or owner
that lives next door. Problems may take weeks or months to
resolve and often not to the condo owners satisfaction.
When it comes to maintenance, exactly what is the condo owner
responsibility? Doors and windows are usually not considered
common condo property and are the owners responsibility. Unit
decks on your condo may or may not be considered common
property. Inside plumbing and electrical usually is a condo unit
owner's responsibility. Special consideration for oceanfront
living including corrosive factors for the heating/cooling
system, automobiles if left outside and doors and windows should
be taken into account. Regular maintenance and monthly wash
downs will increase useful life.
The financial condition of the Condo Association is as
important as ones' personal finances. The annual and monthly
reports should be reviewed carefully. The Condo Association may
be fully reserved for future financial obligations or only
partially. Many Condo Associations partially reserve for future
repairs/replacements and then assess all owners when the time
comes. There are many pros and con's of partial reserving but it
generally favors the unit owners who sell prior to reserve calls
and disfavors newer condo owners. The age of the complex should
be considered carefully in determining upcoming major repairs.
Prospective condo buyers should consider whether they would
like to become active in the Association or let others make
decisions for them. Major changes and issues usually require the
majority of unit owners for approval. The Board of Directors or
the management company typically handles routine matters.
Communal living is not everyone's ideal living situation. The
proximity of neighbors, availability of parking for
residents/visitors, pet noise and loud voices should be
considered carefully. The floor level selected may enter into
the decision process. Are there elevators or stairs to reach the
upper floors? The top floor (or penthouse) assures no overhead
noises like footsteps, paw steps, parties, guests et al but the
adjoining units may be a different story. Condo Association
rules signify if unit rentals are allowed and the minimum
duration. The comings and goings of renters and their entourage
of visitors can translate into a nuisance to some residents.
Condo complex property insurance must be sufficient to fully
restore the unit or complex in the event of damage or
destruction. Owners are required to purchase their own property
insurance to cover the interior usually from the walls in. If an
oceanfront condo is being considered, coverage may be expensive
and difficult to obtain, particularly during hurricane season.
Condo resale potential should be considered. New units may
still be available when its time to sell. In larger complexes,
new phases may be planned in future years. Should circumstances
dictate a sale prospective buyers may prefer a new condo.
Knowing what you are buying and all the considerations can make
the difference between a carefree lifestyle and possibly
regretting the condo buying decision.