In a breach of warranty deed claim, the Michigan Supreme Court ruled in favor of the sellers of a condominium unit and unanimously decided on July 12, 2023, in Galvan v Poon that a building code violation discovered after the closing that had not been subject to any official enforcement action at the time of […]
HOA Homefront — Can entities charge transfer fees? (CA)
Q. Someone who just moved told me that there is an HOA transfer fee of over $800, however it was reduced to just over $500 when he questioned the price. Even the escrow person questioned the $800+. We were involved with two HOAs in Washington State before we moved here and no transfer fee with […]
Financial Facts Condo Buyers Need to Know
Buying a condo can have several advantages over buying a house. Unlike owning a freestanding residence that occupies a plot of land, owning a condo typically involves no yardwork and allows the buyer to only pay for the condo and not the land that surrounds it. Read the article………………………..
Homeowners’ association pros and cons (GA)
Odds are that people in the market for a new home in the Golden Isles will buy one in a neighborhood with a homeowner’s association. Realtor Missy Neu, chief operating officer for Berkshire Hathaway HomeServices Hodnett Cooper Real Estate, said the majority of newly developed neighborhoods have homeowners’ associations, while some of the older ones […]
Financial Red Flags for Clients Buying a Condo
Buying a condo can be an exciting step towards homeownership, offering a convenient and often more affordable alternative to traditional houses. However, being vigilant about potential financial red flags that may impact your investment is crucial. Read the article………………………..
Fannie, Freddie step up scrutiny for condo mortgages: Here’s what that means for buyers
More than two years after the collapse of an oceanfront condo tower near Miami, stricter condo financing guidelines continue to pose challenges for some borrowers. Fannie Mae and Freddie Mac rolled out new rules cracking down on condo and co-op loans following the 2021 partial collapse of a Surfside, Florida, Read the article………………………..
Deed restrictions: What to know about deed-restricted property
If you’re buying a home, or vacant land on which you plan to build one, then deed restrictions should be on your radar. These regulations restrict the way land can be used, as well as what you can build on it and what activities you can partake in while on the premises. Read the article………………………..
What To Ask When Buying A Condominium
Before buying a condo, it’s crucial to ask the right questions. Understand your ownership rights and the reserve fund’s financial status. Familiarize yourself with the condo’s rules and potential pet restrictions. Read the article………………………..
Co-p and Condo Buyers Are Responsible for Previous Alterations
In 2005, a shareholder at an Upper East Side co-op renovated his apartment after signing an alteration agreement in which he took responsibility for any damages that might result from the alterations. The agreement carried an additional requirement: if the apartment was ever sold, the new purchaser had to agree to assume responsibility for these […]
Condominium Closing Costs in NYC for Purchasers
It is no secret that apartments in NYC are expensive. In 2018 the average price of a condominium unit in NYC was $2,880,000. But what many purchasers and sellers fail to consider are the additional condominium closing costs in NYC that are involved in every real estate transaction beyond the purchase price. Read the article………………………..
What your Condo Association Needs to Know About the New Fannie Mae and Freddie Mac Lending Guidelines
The Surfside condominium collapse led to significant reform in the condominium lending industry. In Lender Letter LL-2021-14, Fannie Mae and Freddie Mac implemented temporary lending guidelines in 2021 for condominium purchasers that desired to secure a mortgage as was previously discussed in Prepare your Condo for the new Fannie Mae and Freddie Mac Lending Requirements. […]
What Do I Need to Know About My Homeowner Association?
If you own a home or rental property in a condominium or in a housing development where the homeowners share certain common property, you are probably a member of a condominium owners or homeowners association – collectively referred to as a common interest realty association or CIRA. Read the article………………………..
What Are The Factors Leading To Condos Being Non-Warrantable
If you are a first-timer looking at condos, you may hear someone mention warrantable vs. non-warrantable. Understanding non-warrantable condos is crucial when considering purchasing a condominium. These properties do not meet the guidelines set by government agencies like Fannie Mae and Freddie Mac, making it challenging to secure financing. Read the article………………………..
‘Sleeper’ HOA rule that could cost thousands has McKinney residents feeling duped (TX)
Residents in McKinney’s Craig Ranch Community Association are taking exception to an additional fee charged when they sell their home, and one realtor said it even gave her clients pause when finalizing their sale. Read the article………………………..
Fannie Mae: The Future of Condo Lending
Fannie Mae remains focused on long-term homeownership sustainability, continuously refining our property and underwriting requirements to help set homebuyers up for success. While homes in condo and co-op projects are a great choice for many consumers – especially first-time homebuyers, who make up a higher concentration of condo and co-op buyers – we are mindful […]
HOA Fees: What To Know Before Buying a Home
An HOA, or homeowners association, is a type of community association made up of all of the homeowners in a particular planned community. HOAs, like condo associations, are responsible for preserving the nature of the community and protecting owners’ property values Read the article………………………..
FHA-approved condos: What they are and how they work
FHA-approved condos may seem like a no-brainer. They allow you to build equity without having to maintain a home or property. FHA-approved condos are also especially appealing to first-time home buyers, since the credit score and downpayment requirements are often considerably lower than most conventional mortgages. Read the article………………………..
Fannie Mae’s Secret ‘Blacklist’ of Properties: As Many as 1,700 Condos, Co-ops & HOAs May Be Affected
According to a recent investigative piece by the Orange County (Florida) Register, Fannie Mae is keeping a secret “blacklist” of condominium, HOA and cooperative properties which the federal agency has decreed that lenders should stay away from. Fannie Mae is a United States Government sponsored enterprise whose purpose is to expand the secondary mortgage market. […]
Buyers of Trump-developed condominiums haven’t done so well, new report says
Citing data from the CoreLogic analytics firm, the study found that while the median price for condo sales between 2019 and 2022 rose 38%, the median at Trump-developed properties declined 14%. Not one of the properties the ex-president built outperformed the market where they are located. Read the article………………………..
Co-op/Condo/HOA Instructions Included: The Importance of Governing-Document Literacy
Congratulations, you’ve bought a unit in a co-op, condo, or HOA! Now that you’ve got your deed or your shares certificate, it’s time to make all those alterations you’ve been dreaming of, adopt all those pets you’ve been helping down at the shelter, and of course throw a giant housewarming party! Not so fast. […]
HOA not necessary party in title insurance dispute (VA)
Where a title insurer was sued because of a dispute over who holds title to certain real estate, the homeowners’ association who currently owns the property was not a necessary party. The dispute could be resolved based on the various insurance documents and title binders before the court. Read the article………………………..
Is Your Condo or HOA on the Fannie Mae Unavailable List? (IL)
The Federal National Mortgage Association (FNMA, otherwise known as Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC, commonly known as Freddie Mac) both created new sets of requirements impacting condominium associations. Read the article………………………..
Condominium blacklists: Secretive lending questionnaires impacting affordable housing
Updated lending questionnaires introduced last year by Fannie Mae and Freddie Mac have restricted access to mortgages and created condominium blacklists, impacting thousands of affordable housing units in the U.S. CAI is urging immediate adjustments. Read the article………………………..
Fannie Mae’s Secret ‘Blacklist’ of Properties As Many as 1,700 Condos, Co-ops & HOAs May Be Affected
According to a recent investigative piece by the Orange County (Florida) Register, Fannie Mae is keeping a secret “blacklist” of condominium, HOA and cooperative properties which the federal agency has decreed that lenders should stay away from. Fannie Mae is a United States Government sponsored enterprise whose purpose is to expand the secondary mortgage market. […]
Can Your Clients Refuse to Join an HOA?
When you buy a home constructed more recently, there is a good chance it will be part of a homeowners association. The HOA will maintain the community areas and ensure certain standards are followed. But all this does mean extra fees and more restrictions on what you can do with your home. This might mean […]
B.C. realtor fined $35K for not disclosing $2M in strata building maintenance
A B.C. realtor who failed to disclose to a buyer that a condo building needed $2 million worth of maintenance has been fined $35,000. According to an April 5 B.C. Financial Services Authority decision, Suleman Yasin was working with Sutton Group–West Coast Realty as the lead of a team called, The B.C. Elite Real Estate […]
Fannie’s secret ‘blacklist’ wreaks havoc for condo buyers and sellers
Unbeknownst to the Brills, their real estate agent or their homeowners’ association, mortgage giant Fannie Mae had put their building, the Harbor Lofts condominiums in downtown Anaheim, on a secret list of condos ineligible for Fannie-backed mortgages. Read the article………………………..
My condo president nixes owners’ choice of a real estate agent. Is that legal? (FL)
Question: I have my condominium unit up for sale. I have heard that our president has a habit of asking Realtors who represent sellers for their business cards, and that he informs them that the association will only deal with Realtors from our local area. He also slows application paperwork by denying having received them, […]
Moving Into an HOA Neighborhood? Make Sure You Know These 20 Things
Homeowners associations, or HOAs, have seen a huge surge in popularity over the past few decades. Over a quarter of the U.S. population today is part of an HOA, and 67% of newly completed homes in 2021 were part of HOAs, a massive increase over 2011, when only 18% of homes were part of them. […]
Owners must educate themselves before buying a home governed by a community association (FL)
Q: While your recent answer to the question of unequal assessments for a penthouse versus the other units is factually correct, the one part of your response I take issue with focuses on your statement that the owners knew what they were buying. Read the Q&A……………………………….
What Exactly Is a Master-Planned Community and Why Does It Matter?
Master-planned communities have become increasingly popular in recent years, especially in warmer states. But if you’re considering moving into one, be aware of the drawbacks as well as the benefits. Read the article………………………..
Why Associations Must Be Aware Of Changes To The Marketable Record Title Act (MI)
As discussed in more detail below, the State legislature amended the Marketable Record Title Act (MRTA) in 2019. While many community associations may not be familiar with the MRTA since its provisions historically have not affected community association living or administration, the 2019 amendments make it necessary for community associations to take note now before […]
How to Get on the FHA Condo Approval List
If you want to buy a home but the down payment requirements make this seem out of reach, there are more affordable options. Choosing an FHA-approved condo allows you an easier option to buy with lower credit and down payment requirements. Read the article………………………..
Are Sellers Required to Disclose Delinquent HOA Dues? (MI)
In Michigan the law is clear as to the duties of condominium associations to provide written statements to purchasers of units located in the condominium regarding unpaid assessments, interest, late charges, fines, costs and attorney fees. However, when it comes to homeowners that own lots in subdivisions governed by a Homeowners’ Association (HOA), the law […]
Common HOA Rules: How to Find Them and What to Know
If you are shopping for a home right now or are planning on doing so shortly, you are going to encounter homeowners associations (HOAs). In all homeowner’s associations that are rules that must be followed. Read the article………………………..
Not a fan of HOAs? You’ll have a hard time buying a new home in Texas without one
While some forms of community coalitions existed as far back as the 19th century, the first official homeowner’s association in the United States was established around 1905 in Pasadena, California, and HOAs have come a long way since. Read the article………………………..
6 Important Considerations Before Buying a Home in a Homeowners Association
It’s important to do your due diligence with the help of a legal and accounting professional prior to buying a home in a homeowners association (HOA). Here are some aspects to consider first: Read the article………………………..
Fannie Mae halts financing for 6,102 condos in Laguna Woods (CA)
Without public warning, Fannie Mae unceremoniously pulled the plug on its condo warranty approval for 6,102 condominiums and single-family condos at Laguna Woods Village as of Jan. 31. Read the article………………………..
What Is a Deed-Restricted Community? What to Know Before You Buy or Build a Home
The day I planned to close on an acre lot where I hoped to build a brand-new house, my real estate agent turned up a deed restriction that limited the number of garages I could construct. I had intended to build three, but according to the deed, I could have only two. Read the article………………………..
PENDING SPECIAL ASSESSMENTS: AN AMBIGUOUS PHRASE WITH HUGE REPERCUSSIONS! (WA)
When you are considering whether to purchase a house in an homeowners association or a condominium unit, besides the location, location, location of the property, the next big indicators of whether the property will work for you is how much the property will cost you initially and whether there are additional fees that you should […]
What Does An HOA Contingency Mean?
Before buying a home or condo in a planned community, looking for an HOA contingency is essential. But what is a contingency anyway? And is it mandatory in every real estate sale? Read the article………………………..
Common Interest Community Board Updates Resale Disclosure Fees (VA)
The resale disclosure statutes set forth in the Virginia Condominium Act (“Condo Act”) and the Virginia Property Owners’ Association Act (“POA Act”) establish certain maximum charges that can be assessed for preparing the requisite disclosure documents when an owner sells his condominium unit or lot in a common interest community association. Read the article………………………..
Can My HOA Do That?! The benefits — and drawbacks — of Homeowners’ Associations
The story goes like this: A homeowner’s association (HOA) told a homeowner that a dead tree had to be removed. The homeowner had professionals come and remove the tree, and then received a fine from the HOA because the homeowner hadn’t gotten permission from the HOA to remove the tree. Read the article………………………..
When ABC, Inc. Buys the House Next Door and Next Door and Well, You Get the Idea
Scott D. Weiss, Esq. of Ortale Kelley Law Firm in Nashville, Tennessee, focused his lens at the Community Associations Institute’s (“CAI”) Annual Law Seminar on a relatively new phenomenon that is fast becoming one of the most important issues for community associations nationwide: the challenges presented by corporate investors owning large portfolios of properties in […]
Guide To Restrictive Covenants In Real Estate
When comparing homes to buy, you may discover that some communities have restrictive covenants in place. These housing rules are most common in condominiums, townhomes, planned communities and subdivisions with a homeowners association (HOA). Read the Q&A……………………………….
Research The HOA Before Buying A Condo To Avoid Problems In The Future (WA)
Buying a condo is different than buying a house, as you need to share connecting walls with your neighbors and other physical elements. Before you invest in a condo, you first must understand the differences between living in one and single-family homes. Read the article………………………..
Understanding the HOA Capital Contribution Fee
Several closing costs come with the purchase of a new home. And if the house is part of a homeowners association, one of the costs is the HOA capital contribution. But what is this fee anyway? Read the article………………………..
I Vowed Never to Live in an HOA Neighborhood Again. Here’s Why I Changed My Mind
Living in a neighborhood with a homeowners association (HOA) has always seemed like a huge hassle to me. Several times, my husband and I have walked away from buying a home we love in an HOA neighborhood because of the ridiculous rules and restrictions applied to homeowners or because of the high fees the neighborhoods […]
Want to Buy a Condo in Canada? Think again!
Canada’s ban on the purchase of residential property by international investors for two years is in effect. Intended to take financial pressure off one of the world’s most unaffordable housing markets, the government hopes to encourage buyers to look at homes as places to put down roots instead of as investment properties, reports the BBC. […]
The Florida Condo Collapse Has Changed the Lending Landscape (NY)
When a lender provides financing for an apartment purchase or refinance, it is not only vetting the borrower’s financial viability, it’s also reviewing the co-op’s corporate structure, its financials and the physical condition of the building. The lender also asks for insurance information, occupancy makeup, and how many sponsor-own units and rented units there are. Watch […]