Generally
These Types of Property Require Membership in Associations
If
you have never attended a Home Owner's Association meeting -- whether for
a townhouse,
condominium or other home owners
association -- you many not be aware of how pervasive they can be and
how important it is that you investigate an association when you buy a
townhouse or condominium.
The Home Owners Association has a number of duties and responsibilities.
It will be responsible for not only the day-to-day operation of the complex,
but also for long term planning. It is this home owners association that monitors
adherence to the various restrictions -- for example what modifications
you can or can't make to your unit -- for the entire complex.
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Condominium Associations
Pros and Cons, Things to be Aware Of. |
Repairs
and Maintenance
In
general, the condo association or twonhouse association will take care of all of the exterior upkeep
of the buildings and grounds. This can vary a little from condo association
to condo association, so it is important for a condominium or townhouse buyer
to have a clear idea of exactly what will (or will not) be covered, so
as to not have a big surprise when you find out that you -- and not the
condominium association -- are responsible for some needed exterior repair or maintenance.
Covenants,
Restrictions, and "Don't Even Think About It"
All
home owners associations, condominium associations, townhouse associations, or other residents associations, are required to file a declaration
of covenants, conditions and restrictions. Simply put, this document discloses
precisely how the homeowners' association is to be structured, exactly
what its duties and responsibilities are, and what restrictions are to
be placed on all owners as to acceptable modifications and improvements
to their individual units. This document will be specific -- for example,
it may state that no owner can make any modification to the color of doors
or windows, or may even stipulate what type of interior window coverings
in the way of curtains and drapes that are acceptable. The goal is to
have as much uniformity throughout the complex as possible.
The
Financial Health of the Homeowners Association
One
aspect of the association that you will want to investigate closely for
any townhouse or condominium that you are considering is its financial
condition. Associations are required to develop an annual budget for both
income (homeowners' fees) and expenses, as well as the current state of
its financial condition. The more solvent (the more cash reserves available)
the condo associations are, the more protected the homeowners are. If there is
a lack of cash reserves and an expensive repair becomes necessary, there
is only one place for the association to go to get the needed funds: To
the homeowners via a special assessment (a one time charge to all members
of the association).
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