Florida condominiums are selling like crazy right now, including bulk condominiums to investors who are looking to make a profit. It’s entirely possible to make money with condominiums, but it’s also important to know as much as possible about purchasing condos and the condo by laws before doing so, to avoid common pitfalls and issues. Here are some important things you should know before attempting to buy a Florida condominium.
Owners Association Issues
The first thing you’re going to want to think about is the owner’s association, which is the committee that governs the condominium units and the behavior of the tenants. While many owners associations are fairly lax in their rules and guidelines, others are extremely strict. You should read over the policies and information before purchasing any condo so you know how difficult it will be to renovate and then sell the condo. Ask for a copy of the Condo By laws and review them.
With the economy the way it is currently and the unemployment rate being so high, many individuals are unable to pay their monthly HOA payments. This can mean that there simply isn’t enough money to handle maintenance issues and other problems that arise with the condominiums. Another tragic result is that the building could end up losing insurance coverage. If this happens, banks simply aren’t going to lend money to interested buyers who want to purchase one of the units. You can see that this is a difficult situation to be in, so thoroughly researching the history of payments and issues is a must. Along with the condo by laws you should be requesting a copy of the condominium budget and minutes.
Thoroughly Looking Over Special Assessments
It’s very important that you and an attorney thoroughly look over the meeting minutes that you will be provided with. These will include the things that are discussed as well as special assessments addressed in meetings, and will give you insight into what’s going on with the building. Unfortunately, many buyers realize too late (through these documents) that there has been an ongoing problem and they’re left to deal with the problems after they’ve already purchased the building. If a problem is spotted in the special assessments, you should thoroughly investigate the issue before making an offer or purchasing. In addition to the minutes, there is small print in the condominium by laws that you are bound by so read it.
If you go into a contract or even look at a property without the benefit of a real estate attorney, you could end up making a bad investment. You need the professional opinion and advice of someone who deals with these issues every single day, especially when it comes to Florida condominiums. Condominium Documents or Condo by laws should be reviewed in detail. Take the time to seek out a qualified attorney in order to get the best legal expertise when it comes to purchasing Florida condominiums.
By using these tips and information you can make sure it’s a great deal before purchasing a Florida condo, whether you plan to keep the condo or invest to make a profit. Looking for a copy of the Condo Documents search our database of thousands of Florida Condominium Documents