We’re almost to midsummer; it’s hot, we’re in a drought and fewer people want to look at condos to buy, even if they really want one. However, it may be time to take a step back and reconsider condo shopping.
We’ve had a slow real estate market, especially for condos, but right now may be the opportune time to buy. The inventory is large and prices are low. Before the winter buyers return, it would be smart to start looking at available properties, and more importantly, to start educating yourself about condo living.
As a condo owner, you have exclusive ownership of your condo, exactly the same as if you purchased a single-family home. You receive a deed to the property, which includes the right to occupy, renovate, lease or sell your unit, subject to certain restrictions as stated in the condo documents and rules and regulations.
For example, you have the right to renovate as long as your renovation doesn’t jeopardize the structural integrity of the building. In almost all condominium associations, owners are required to submit an application outlining the nature of the renovation, the licensed contractor’s name, the start date and the approximate finish date.
As an owner, you have access to all of the common elements such as pools, gyms and clubhouses. In some condo associations, there are common elements, called limited common elements, that are assigned exclusively to the specific owner. These elements could include boat docks, parking spaces and possibly some outdoor areas.
When living in a condominium association, you are automatically a member, similar to a private club, which gives you a voice in the governance of the community. You will be asked to vote on material alterations, the election of the board of directors and other significant community decisions. If this procedure is not followed in a condo association you are considering, it should raise a red flag and that is something you should question.
I can’t emphasize enough that becoming a board member is the best way to have your voice heard, and the best way to protect your personal investment.
Florida law allows condo owners the right to inspect the association’s official records. It’s not practical for every detail of the association’s financial position to be disclosed at a board meeting. Therefore, if you want more detailed information, you can ask the board for specific records to review.
The stability of the association’s finances is the most important job the board of directors has, so voting for the board members you feel are ethical and knowledgeable is crucial.
All owners have the right and the obligation to carefully review finances, especially homeowners association (HOA) fees and special assessments, to verify there is justification for a financial increase. Don’t be shy to ask for this information.
Don’t be a dummy. Before purchasing a condo, read some Florida law about condo ownership. It’s easy to find on the state of Florida’s website and many condominium attorneys have websites that explain condo owners’ rights and condo-related laws.
That said, the hot summer may be the perfect time to buy a condo this year. The market is starting to move ever so softly right now and there is a lot to choose from.
