Condo Associations are Like Condoms
I thought this blog was a perfect example of what happens when you don't have the protection of a home owners association.
I had a buyer client interested in a condo unit on Maui. Their agent told them the price was indeed $26,000 however the HOA was on the verge of bankruptcy. The property tax was the responsibility of the HOA. If the HOA defaulted the remaining owners would be stuck with a huge bill.
Can you say ouch?
Condos & The Ultimate Protection Plan. One of my agents shared a funny story with me this evening. She has a buyer who is very interested in writing an offer on a condo. However, the complex is not fully occupied and the Condo Association is not yet in place.
My agent contacted the bank who funded the development and voiced her concern regarding who would be responsible for the exterior maintenance of the complex. The Banker responded that each condo owner would be responsible. My agent asked what type of protection her buyer would have in the unfortunate event of a leaky roof. The Banker responded… 'What kind of protection does she need?'
Well… Mr. Banker, it works like this… Associations are like condoms, they're used in an effort to thwart potential problems and protect against surprises down the road. It’s imperative to have certain protection in place BEFORE any hanky panky begins. The Banker suggested a STUDS-IN protection plan. Whew… thank goodness some STUD will be taking care of any incident that happens between the walls. The Banker also suggested STUDS-OUT protection too! My agent and I laughed as our minds began to wander on that one ;)
Sometimes, you just have to go where no STUD has ever gone before and have a little fun with these things!
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