“No Homeowner’s Dues” It sounds good doesn’t it? Well, it’s anything but good when it comes to a condo and it’s a load of marketing hype when it comes to a town home.
Here’s the scoop:
Condos
A condominium is a type of joint ownership where some parts of the property, like the land, lobby, storage areas, parking and hallways are commonly owned and other parts, such as your unit are individually owned. Don’t be fooled. Although it might seem great in some real estate flyers to hear you do not have to pay dues every month, when there are repairs someone has to pay and that someone is you.
Paying condo dues is actually a good thing. If a condo association is doing a good job, they should be collecting adequate dues to pay for regular maintenance, repairs, building insurance and saving up for big items like a new roof. If the association isn’t collecting dues and managing them well then things like earthquake insurance won’t be in place (because policies are for buildings and not individual units) to help you out when things get shaken up.
You have a right to review the resale certificate prior to making a deal and signing on the dotted line. The resale certificate should tell you what you need to know like:
the amount of reserves the association has in the bank, upcoming assessments, current homeowner’s fees and the minutes from the last year’s meetings. After reviewing the resale certificate elements you can accept or reject the deal.
Town Homes
“Town Home For Sale, Zero Lot Lines and No Homeowner’s Dues” If you own a town home, it’s just like owning a house only you share a wall with your neighbor. You own your house and property and your neighbor owns theirs. It all looks like one big property when you drive up to take a look. But, when the deal is done, it can get a little confusing about who cuts the grass, and who sweeps the walks. To make it worse, if after several years you want to paint the building or get a new roof and the owner next to you doesn’t, you could end up painting or roofing only your half. You could even disagree on color and end up with a real zebra because no one is under any obligation to listen to their neighbor when it comes to choosing paint colors or when to cut the grass. The yards look great when you go out house hunting, but the minute the deal is done, you have to cut the grass and make the repairs yourself.
In both cases you have rights up front and can always reject the deal if it’s not the best thing for you in the long run.
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