UNDERSTANDNG YOUR CONDO/HOA DOCUMENTS

Thinking of buying a condo or an HOA?   Before you do, make sure you understand:
The Rules and Regulations
The By-Laws
The Budget

Many buyers fall in love with Condo or HOA only to find out after the fact that there is a problem with the budget (especially in this economy). An example:  there might not be enough funds to cover costs for re-siding the buildings, and the new buyer is placed in the position of paying a 'special assessment' in order to maintain the financial stability within the community.  I had a client who lost a $8,000 deposit for an Annapolis Condo after he found out the community was going bankrupt.  Because it was prior to settlement, and he had signed the Documents (after being told all was strong financially), the Court refused to let him out of the contract or refund his money.  He was then forced to move in, only to find out that over 75% of the units were still owned and rented by the developer.  He will more than likely never be able to sell that unit.  These Documents are tricky, and if you don't understand them, make sure your Realtor does.  You can do this by working with a "CONDO SPECIALIST" to purchase your unit.  Don't take the word of a sales person (who might not know the Documents either).  Make sure you review them with your Condo Specialist, ask questions, make sure you understand all that is expected of you, your rights and especially where the community stands financially.  Without this information, all will win but you at a hefty price.

So, if you are buying a Condo/HOA for yourself or a family member, protect yourself by working with a Specialist in Condo Law and Real Estate.......this will protect your investment.

Judith Fallon
Condo-Specialist
(410) 353-2377