Condo docs and help with a seller?

[newcondo]

What is the name of your state? Maryland
I just received my condo docs and after reviewing my main concern I have some questions. During home inspection the property in question(top unit) was found to have leaks in the roof directly affecting the unit in question. After review of the condo docs it reads:

Section 13. Maintenance and Repair.

(a) By the Association. The Association shall be responsible for the maintenance, repair and replacement of the following, the cost of which shall be charged to all Unit owners as common expense:

(i) Except as otherwise provided in paragraph (b) of this section 13, all of the Common Elements, whether located inside or outside of the Units; and

My question is this: 1.) this is definitely saying that the financial responsibility would rest upon me as the new unit owner?

and 2.) I have heard of getting sellers to start escrow accounts to fund known issues when closing comes before those issues would be fixed, but how do i go about addressing this in an addendum form without knowing what the financial cost would be? any suggestions would help please

 

[Paddy Reagan]

The roof is, indeed, a common element and must be repaired by the condo association. There are three sources of funds for such repairs:

a. Minor repairs may be covered by Repairs & Maintenance funds in the annual operating budget.

b. If the community maintains a reserve account, roof replacement and repairs is one of its basic components. The cost of major repairs may be paid from this account.

c. If reserves are not available, major repairs will usually result in a special assessment. If this assessment is approved before closing, the seller should be pay his/her share of the assessment as a part of closing (even if the work hasn't been completed.) If the assessment is approved after closing, payment will be your responsibility.

To protect yourself, ask the seller to provide information regarding the items listed above and cost estimates obtained by the board for the repairs. If it appears that a special assessment will be necessary, calculate the share for the unit you're buying based on percentages included in the delaration package. Use this estimate in your contract addendum.

 

[newcondo]

Thanx Paddy I was expected to close in less than a week so time was very limited. The seller wasn't to helpful nor willing to take responsibility other than saying it was a condo association issue and cost related problem however that cost could fall on me and with out an escrow account I would have been up deep creek! I walked and backed out on the whole thing hope the seller can find someone willing or who misses it on the home inspection because as a first time buyer I didn't want the burden of replacing a roof! I saw they put it back on the market I wonder will they be honest and disclose the now known roof issues?? anyway I put another contract in on another property within the same condo community which has more remodeling done lets hope I win the bid! let the bidding wars begin....

 

[BelizeBreeze]

This is exactly why I don't live in condos, HOAs or any other than my OWN DAMN HOME.

 

[newcondo]

This is exactly why I don't live in condos, HOAs or any other than my OWN DAMN HOME.

LQTM, if I could afford to live in my own home or town home even I would but as a first time buyer (and pretty young too) it's a start...

 

[LindaP777]

I own a condo that I rent out. The roof leaked. The roof & ceiling repair was condo associations responsibility but the repainting of the ceiling and wall, after the repair, was my responsibility! I understand this is typical.

 

[lcannister]

LQTM, if I could afford to live in my own home or town home even I would but as a first time buyer (and pretty young too) it's a start...

If you were working with a real estate BUYER'S agent and a GOOD broker you might find that for the exact same payments you COULD have a house of your own.

 

[newcondo]

If you were working with a real estate BUYER'S agent and a GOOD broker you might find that for the exact same payments you COULD have a house of your own.

Oh please elaborate more? My scores are in the good bracket and that isnt the issue it how much house can one afford? If i could even get a TH for 1500/mo. please let me know how this is done?

And Linda, how long before they fixed the roof? I have come to find out that it isnt just that unit but the whole condo development(20yrs old) just needs roof replacing. I want to at least be able to have a time frame and know if they have funds to fix the issue? I just dont want to move in then be hit with the cost due to special assesment and evn on the worse side they decide its not going to be fixed for another 3 yrs or so....

 

[LindaP777]

And Linda, how long before they fixed the roof? I have come to find out that it isnt just that unit but the whole condo development(20yrs old) just needs roof replacing. I want to at least be able to have a time frame and know if they have funds to fix the issue? I just dont want to move in then be hit with the cost due to special assesment and evn on the worse side they decide its not going to be fixed for another 3 yrs or so....

The roof should be fixed immediately if it's leaking. You should be able to get a copy of the info and how much they have in reserves for such repairs.

 

[newcondo]

The roof should be fixed immediately if it's leaking. You should be able to get a copy of the info and how much they have in reserves for such repairs.

Ok so lets say I got my condo docs. and noticed that the minutes from a condo assoc. meeting were taken in 2005 where a unit owner expressed the concern and that the roofs needed to be replaced, the reply from the management company/assoc. was that they will be fixing the roof and that a special assessment may be needed to do so? I also saw that the reserve funds for roof repair on the budget expense sheet was mighty low(roughly 9k) for all units to receive replacement? Since then the seller has agreed to do an escrow account to fund for any assessment needed and/or cost for those repairs! Here lies the problem I have:
1.) When do they(the condo assoc.) intend on getting the roof work done as since 2005 nothing has been done and will the condo assoc. provide something in writing which i can use as security it will be done sooner then later(even projected estimated time)?
2.) Can i receive in writing the cost for the assessment so that the seller can set aside those funds in the escrow account?
3.) Finally i am really getting the feeling this condo assoc. is not that great and that its not a good move/investment(as a 1st time buyer) since stuff is falling apart and the units are 20 yrs old and not well made from the looks of things.(this is the second unit I 've had a contract on in the same complex and has had roof issues! any suggestions?

 

[Paddy Reagan]

1.) When do they(the condo assoc.) intend on getting the roof work done as since 2005 nothing has been done and will the condo assoc. provide something in writing which i can use as security it will be done sooner then later(even projected estimated time)?

The board of directors has a fiduciary responsibility to the community and is responsibile to the owners for, among other things, maintenance of the property. Damages caused by failure to make repairs when board members know problems exist is usually an actionable offense and rarely will directors & officers insurance recognize a claim based on these circumstances. I doubt that you'll receive ANYTHING in writing from this group.

2.) Can i receive in writing the cost for the assessment so that the seller can set aside those funds in the escrow account?

Doing so presumes that repair estimates are in hand and an assessment is pending. Based on behavior to date, I wouldn't expect any of this to have been done. You may ask for a copy of the association's reserve program data. It should contain specific information about each major building component such as roof replacement/repair. You may be able to determine the estimated remaining life of the roof and the cost of replacement. Using the share percentage for the unit you wish to buy you can determine two important facts: When the roof will need replacement and how much it will cost. If you're two years away from replacement, calculate the cost to the unit owner. This won't help if simple repairs are needed now but if the delay is to squeeze the final months of service from a worn out roof, you'll be looking at serious money one day soon. When I hear of leaks in many places in a condo roof, the replacement alarm always sounds for me.

3.) Finally i am really getting the feeling this condo assoc. is not that great and that its not a good move/investment(as a 1st time buyer) since stuff is falling apart and the units are 20 yrs old and not well made from the looks of things.(this is the second unit I 've had a contract on in the same complex and has had roof issues! any suggestions?:confused

If this was new construction 20 years ago, major roof work can't be far downstream.

Regarding your confusion, remember this: There is nothing more costly and frustrating than a condominium building filled with problems managed by an inattentive board of directors.

Good luck!

 

[newcondo]

The board of directors has a fiduciary responsibility to the community and is responsibile to the owners for, among other things, maintenance of the property. Damages caused by failure to make repairs when board members know problems exist is usually an actionable offense and rarely will directors & officers insurance recognize a claim based on these circumstances. I doubt that you'll receive ANYTHING in writing from this group.



Doing so presumes that repair estimates are in hand and an assessment is pending. Based on behavior to date, I wouldn't expect any of this to have been done. You may ask for a copy of the association's reserve program data. It should contain specific information about each major building component such as roof replacement/repair. You may be able to determine the estimated remaining life of the roof and the cost of replacement. Using the share percentage for the unit you wish to buy you can determine two important facts: When the roof will need replacement and how much it will cost. If you're two years away from replacement, calculate the cost to the unit owner. This won't help if simple repairs are needed now but if the delay is to squeeze the final months of service from a worn out roof, you'll be looking at serious money one day soon. When I hear of leaks in many places in a condo roof, the replacement alarm always sounds for me.



If this was new construction 20 years ago, major roof work can't be far downstream.

Regarding your confusion, remember this: There is nothing more costly and frustrating than a condominium building filled with problems managed by an inattentive board of directors.

Good luck!

I think your advice is to not move there I will take head because it shouldn't be that bad if they are a good condo assoc. I think im going to look into new constructions instead