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I live in an Association and currently am a Vice President. It isn’t a glamorous position, and there is always something that pops up – especially when new owners move in. There are some things you will want to know BEFORE you sign that offer.
You may be the master of the castle, but the condo rules the Association.
If you are thinking about purchasing in an Association in the Salt Lake City area, the Association Rules and By-laws have a large factor of your quality of life living in that particular Association. You as the buyer, have the right to look at any and ALL paperwork from the Association. The seller must produce the requested paperwork within a certain number of day and you have a certain number of days to read and agree or disagree with what the Association has in place.
You will want to pay particular attention to:
The Association Rules & Restrictions:
The Association can implement any rule or restriction it sees fit and is voted on by the Association. Since these are generally drawn out at the conception of the Association, they are pretty much set in stone and enforced. Some rules you may need to know is whether pets are allowed, can you have a home office, and/or can you rent your unit after you purchase it?
Some restrictions may be not having anything in the green common area so mowers can quickly mow around without damaging personal items – even if it looks like it’s YOUR back yard, it still is common ground and the Association’s. Perhaps you like to have a dish instead of cable – what restrictions are there with that? Can you place a dish on your roof, deck or in the green area?
The Association Budget:
You need to know what the Association budgets annually for repairs and what happens if the funds are not enough to cover what needs to be done? How often are the decks stained? Under current mortgage criteria, the fund must equal at least 10% of an Association's annual budget. You'll also find a line item for any Association fees that are in arrears.
The Association Reserve Study:
State Laws require condo Associations to obtain a “reserve study” every three to five years to anticipate expenses and budgets. If an Association hasn’t done an independent study in ten years, that does raise the question about the buildings and management.
Minutes of the Association:
If it’s within the state laws, you may request the minutes from the last two years. This will give you an inside of what is important and what is not within the Association.
The Association Master Insurance Policy:
Before you can insure your unit and belongings with a condo policy (known as an HO6), you need to know what the Association's master policy for the building provides. Bylaws will list whether or not the policy covers everything (an "all-in" policy) or everything except the interior of your unit.
You will need to know where the Association starts and your personal living space ends. It may be defined as a paint layer or wall board. You will want to know who’s policy covers what. Does the Association own the doors, windows and garage doors? Good thing to know. However, even if you do “own” them, the Association may tell you what they can look like.
Living in an Association can be very rewarding. There are advantages to owning in an Association in the Salt Lake City area. However, to make sure you ENJOY your Association, you will want to know exactly what you are buying into.
Whether you’re thinking about buying OR selling your unit in an Association, contact us today. We can weed through the Rules and Regulations of an Association and make sure you know what you buying. If you’re selling, we’ll make sure you have everything you need to show prospective buyers for your unit in and Association.
The Real Estate Professionals Team is not only passionate about finding real estate for YOU, but being a step above the average.
We provide access to thousands of properties in Utah & California.
We offer a no obligation phone or telephone consultation to assist you in an easy enjoyable home buying process.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.