On October 13, 2021, the Federal National Mortgage Association (Fannie Mae) issued Lender Letter LL-2021-14 (“Lender Letter”), to take effect January 1, 2022. This Lender Letter temporarily revises the eligibility requirements for lenders issuing loans that may be purchased by Fannie Mae for properties located in condominiums containing five or more attached units. Read the […]
Preparing Documents an Association is Required to Provide to Prospective Purchasers
Editor
/ Owner - December 1, 2021
In today’s market, homebuyers need to act swiftly and are often under time constraints dictated by the purchase contract. Thus, it is important for condominium associations to be prepared for when a prospective purchaser makes a request for documents that the association is required to provide (and know what an association is not required to […]
The Financial Pros and Cons of Moving Into a Senior Community
Editor
/ Owner - November 29, 2021
There might come a time, as you near retirement age or are retired, that you will want a change of lifestyle. You don’t need the big house you had as your children were growing up, and the maintenance that comes with it is now too much. Who needs to mow the lawn or shovel snow […]
Fannie Mae Tightens Rules for Lenders in Wake of Condo Collapse
Editor
/ Owner - November 11, 2021
The fallout keeps coming from last summer’s condominium collapse in Surfside, Florida. In the latest development, Fannie Mae, the federally backed mortgage giant, has announced that it will no longer guarantee mortgages in co-ops or condominiums that have levied an assessment to pay for deferred maintenance that affects the structural integrity of the building. Read […]
Ask a real estate pro: How should condo board tell new residents about fee increase?
Editor
/ Owner - October 28, 2021
Q: How should the board member interviewing new residents in our condominium association handle knowing there will be a significant increase in the monthly maintenance fees due to the increasing insurance premium? It is a sensitive subject for sellers to discuss with buyers, but we want to be transparent as an association with our new […]
4 Common Myths About HOA Property Value
Editor
/ Owner - October 19, 2021
Property value is one of the most frequently addressed problems in HOAs. It’s no surprise that maintaining property prices growing is a shared priority that everyone can agree on when a council of homeowners manages the neighborhood. But what factors contribute to an HOA home’s increased value? What jeopardizes the value of your home? We’ve […]
Retirement Community
Editor
/ Owner - October 12, 2021
According to Community Associations Institute, over 70 million Americans live in a community association. A significant portion of that 70 million is made up of retirees. Now, the phrase “retirement home” can conjure a certain image, but the fact is today that people actually have more options than ever before when it comes to selling […]
Condo Association sells unit after denying widow transfer of ownership (FL)
Editor
/ Owner - October 12, 2021
A woman says the New Smyrna Beachfront condo her husband owned for more than a decade is being sold out from under her, after the condo association board denied the transfer of property from her late husband’s name to hers after he died. Read the entire article……………………………….
Pros and cons of gated communities (CA)
Editor
/ Owner - September 28, 2021
Gated communities have been around for millennia. Originally, they were called castles, where royalty lived in splendid isolation, surrounded by their peasants, workers and soldiers, all encircled by a moat and high walls. Why castles, moats and walls? Security. Read the entire article……………………………….
The Pacaso Puzzle (NH)
Editor
/ Owner - September 23, 2021
Pacaso is the fasted rising company in American history to reach “unicorn” status, i.e. a company valued at more than a billion dollars, and how it did so relates to condominium associations. In previous columns I have talked about the pros and cons (mostly cons) of short-term rentals in condominium associations, including the stream of […]
Real estate Q&A: Our condo board is dragging its feet on approving our buyer. What can we do? (FL)
Editor
/ Owner - September 16, 2021
Q: We are selling our condo, and closing is fast approaching. Our board is dragging its feet on approving our buyer. We are getting concerned because we must pack and move out, and we do not even know if our buyer will be allowed to buy our home. What can we do? Read the Q&A………………………………………
Moving to a golf community? Great! But the golf retirement of your dreams requires some serious forethought
Editor
/ Owner - September 10, 2021
You want to move to a golf community. Fine. But where? And what amenities are most important to you? Want to buy a house somewhere warm and join a private club? Cool — just make sure you understand the carrying costs and possible assessments. What about, for variety’s sake, moving to a town teeming with […]
Developments Face More Scrutiny After Catastrophic Miami Condo Collapse (FL)
Editor
/ Owner - September 5, 2021
The full consequence of the tragic Surfside, Florida, condominium collapse won’t be fully realized for years to come. For now, the deadly disaster at the Champlain Towers South stripped some luxury condominium buyers of the comfortable assumption that they’re buying a safely constructed property. Read the entire article……………………………….
HOA Homefront: Does your community have these disclosures ready for buyers? (CA)
Editor
/ Owner - August 27, 2021
California Civil Code Section 4525 requires specific important disclosures be provided to members upon request, to give to prospective buyers. Well-run HOAs should have these many disclosures readily available. Here is a checklist for buyers, sellers, and managers: Read the entire article……………………………….
Considering buying a condo? If you come across any of these red flags, walk away
Editor
/ Owner - August 16, 2021
A condo can be an affordable alternative to a single family home. It can also allow you to live in a building with access to amenities such as gyms and pools. And it lets you to avoid having to maintain any exterior space. Read the entire article……………………………….
Changes to Special Assessment Language in North Carolina Realtor Standard “Offer to Purchase and Contract
Editor
/ Owner - August 8, 2021
As discussed in previous blogs (see What’s Special about Special Assessments?), HOA/condo special assessments are referenced in the North Carolina standard Offer to Purchase and Contract form. By way of background, the NC Bar Association and NC Association of Realtors® have “Joint Forms” used in residential real estate closings. Read the entire article……………………………….
HOAs: What You Need to Know About Homeowners Associations
Editor
/ Owner - August 3, 2021
Chances are you’ve encountered a homeowners association (HOA) on your homebuying journey. Homeowners association and community association memberships are becoming more common for residential homes. According to research from iProperty Management, approximately 58% of homeowners now live in an HOA community. Read the entire article……………………………….
Condo Buyers Should Investigate What They Don’t Know (FL)
Editor
/ Owner - July 25, 2021
Florida’s legislature mandates non-developer sellers of residential condominiums provide certain condominium records to a prospective buyer if requested by the buyer under a contract to purchase the condominium unit. The buyer has to be under contract to have right to the records. Buyers of residential condominiums from non-developers can terminate the contract up to three […]
Following Surfside Condo Collapse, Due Diligence Becomes More Important Than Ever
Editor
/ Owner - July 22, 2021
The collapse of the Champlain Towers South condominium in Surfside, Fla., shows how crucial it is for buyers to not only verify the financial soundness of their future condo association, but the soundness of the building as well. Read the entire article……………………………….
With state lawmakers pulling back HOA powers, what should new residents think? (CO)
Editor
/ Owner - July 21, 2021
Vail and its surrounding areas are currently experiencing a huge surge in interest from new homebuyers. The Colorado Sun have termed the movement of families out of large urban centers as ‘the great urban exodus’, with huge pressure building on Vail home builders and renovators in their efforts to tap into the demand. For many […]
Why Steady, Low Condo Fees Should Raise A Flag – And Other Tips For Owners And Buyers
Editor
/ Owner - July 19, 2021
The tragic collapse of the Champlain Towers South in Surfside, Fla., has many condo owners raising questions and worries about their own buildings’ structural safety and financial health. Generally, it is considered best practice for a condo association to study how much money it needs to keep in a rainy-day fund for future work like […]
A Buyer’s Guide to HOAs
Editor
/ Owner - July 8, 2021
Although HOAs are growing in popularity, many buyers are hesitant to join, fearful of the authoritarian reputation HOAs tend to have, and uneducated on what to expect when purchasing a home within an association. On the flip side, HOAs can be very appealing, as membership often comes with unique amenities, added security, and increased property […]
Condo ownership in Florida: What to know before you buy
Editor
/ Owner - July 6, 2021
Following the tragic collapse of the Surfside condominium, many condo owners are revisiting their rights while potential buyers are wondering what they should be asking before closing a deal. WPTV spoke Tuesday to a local attorney about what you need to know before deciding to buy your new home. Read the entire article……………………………….
With condo developer in tax debt, two buyers ask Great Barrington for indemnity. The town refuses. (MA)
Editor
/ Owner - June 19, 2021
The buyers of two condominium units in Powerhouse Square are asking the town to hold them harmless for the developer’s more than $200,000 in unpaid property taxes, and the town is refusing. Read the entire article……………………………….
HOA Restrictions on Property
Editor
/ Owner - June 17, 2021
Many individuals purchasing real property expect that they have the right to use the land without interference from their neighbors. However, that right is limited both by local governmental regulations and any recorded restrictions imposed on the property. This article addresses private restrictions. Read the entire article……………………………….
Read your documents and get involved: Tips for your first homeowners association
Editor
/ Owner - June 2, 2021
With condominiums and gated neighborhoods on the rise, more and more of Rochester’s residents will eventually find themselves moving into a property with a homeowners association. The premise is simple: Homeowners agree to pay fees and abide by rules in order to maintain a cohesive atmosphere in the neighborhood. Read the entire article……………………………….
Living in a Condo: What’s Myth Versus Fact? (ON)
Editor
/ Owner - May 20, 2021
Many who live in a condominium community recognize its value, but it can be difficult for some homebuyers to look past the common misconceptions about condos. Beyond dues, rules, and regulations, there’s so much more that defines a condominium and makes it an enjoyable place to call home. To help clear the air about living […]
Reading The CC&Rs Is An Essential Task In The Homebuying Process (OR)
Editor
/ Owner - May 19, 2021
Covenants, conditions and restrictions (CC&Rs) are generally not considered to be scintillating reading material. While it’s a laborious task, it’s a crucial part of the homebuying process when considering purchasing a home in a planned community. Planned development communities can come with many perks, such as neighborhood parks, trail systems, pools, tennis courts and clubhouses. […]
What to Know About Selling a Home in a Retirement Community
Editor
/ Owner - April 12, 2021
Do you need to sell your home in a retirement community? Selling house in an over 55 community is slightly different than a traditional setting. If you are over 55 and living in a retirement community, you may have changed your plans and have decided that retirement communities aren’t for you. Occasionally this happens, especially […]
Buying in Bulk—A New Strategy for Condo Purchases (NY)
Editor
/ Owner - March 30, 2021
As developers struggle to offload excess condo inventory in an oversaturated market that at least partially stalled at the onset of the coronavirus pandemic, it is widely reported that investors and mezzanine lenders have swooped in with offers to buy units in bulk. While experts say that the steep discounts being proposed render most of […]
The pros and cons of belonging to a homeowners association
Editor
/ Owner - March 29, 2021
If there’s one thing any homeowner knows, it’s that there are pros and cons to participating in a homeowners association – and the choice is one unique to every individual. More than half of newly built single-family homes and 80% of all homes in brand-new subdivisions are governed by HOAs. Overall, one-quarter of the U.S. […]
Condo Boards have to be Careful in Withholding the Waiver of the Right of First Refusal (NY)
Editor
/ Owner - March 24, 2021
The Board of Managers of the Oceana Condominium No. Two learned recently that withholding the waiver of the right of first refusal cannot be used to block an unwanted condo sale. Read the article………………………………
Answers to Common Questions about HOA Estoppel Letters
Editor
/ Owner - March 9, 2021
When owners move out of an HOA, they will have some added responsibilities before they can say a final goodbye to the neighbourhood. Different communities have different moving requirements; some may ask owners to complete a home inspection, transfer documents, or hand over other paperwork before transferring ownership. Read the article……………………………………
Top Tips for Moving Into an HOA
Editor
/ Owner - March 2, 2021
Are you moving into an HOA neighborhood? This process can be both exciting and challenging — especially for new homeowners. Fortunately, you can use a few tricks to help you adapt quickly to your new life. It doesn’t have to be so overwhelming. Here is how you can make your move into an HOA neighborhood […]
How your neighbors’ delinquent dues can derail your condo sale
Editor
/ Owner - February 23, 2021
When you buy a single-family house, your lender will base a loan decision on your financial qualifications and the market value of the property. Condo buyers face a third level of scrutiny: the health of the condo association’s finances. Read the article…………………………….
What Are Covenants, Conditions And Restrictions (CC&Rs) In An HOA?
Editor
/ Owner - February 3, 2021
If you move into a condominium, gated complex or other planned community, there’s a good chance you’ll also have to join a homeowners association (HOA). These organizations exist to help protect and maintain the properties in the community by establishing and enforcing certain rules. Read the article……………………………
Need to Know: Purchasing a Condo with a VA Loan
Editor
/ Owner - January 14, 2021
Why on earth would you buy a condo, when you can own a house? “Lots of reasons,” says US Navy Veteran Dennis Taylor, who recently bought a condo in Long Beach, California with his VA home loan benefits. “Being single, I didn’t need a lot of space, but I still wanted the American Dream. First […]
Fannie, Freddie tighten rules for condos in vacation locales
Editor
/ Owner - January 10, 2021
Getting a mortgage for a resort-area condo might become more difficult after Fannie Mae and Freddie Mac moved to tighten rules on buildings with many short-term rentals and hotel-like amenities, some Realtors and bankers say. Fannie Mae last month changed its rules to make it clearer that it won’t back certain loans in high-rent vacation […]
Your Homeowners Association Questions Answered
Editor
/ Owner - January 7, 2021
A homeowners association (HOA) can be a blessing or a curse to those who belong to one, depending on whether the association is well-run, has reasonable fees and isn’t overly restrictive. If you’ve never lived in—or even heard of–an HOA, here are some things you should know about one of the fastest-growing trends in home […]
St. Paul condo sellers must disclose smoking policy to buyers (MN)
Editor
/ Owner - January 7, 2021
St. Paul condo and townhouse owners looking to sell their units now must disclose their association’s smoking policy to prospective buyers. The City Council unanimously passed a new “Smoking Policy Disclosure Report” ordinance Wednesday, prompted by condo owners who said their neighbors’ secondhand smoke seeped through walls and utilities, jeopardizing their health and quality of […]
What Is A Planned Unit Development (PUD)?
Editor
/ Owner - December 18, 2020
A planned unit development, or PUD, is a community of single-family homes, and sometimes condos or townhomes, where every homeowner belongs to a homeowners association (HOA). If you’re shopping for a home, you might need to know what a PUD is and how it works because it could affect you during the mortgage qualification process, […]
A Golf Course Community’s Big Variable for Retirees
Editor
/ Owner - December 15, 2020
Golf club memberships can often be a separate, and hefty, annual fee at golf communities. Here’s some guidance before you tee-up your retirement move to live on the links. Read the article……………………….
HOA Fees: What You Should Know Before You Buy
Editor
/ Owner - November 30, 2020
If you’re looking to buy a home, you’re likely familiar with the main monthly costs associated with it—mortgage, taxes and insurance. But you may need to add another one, as well: Homeowners association (HOA) fees. Read the article……………………………..
First, ask if your dog is allowed in the condo you’re looking at. And then get the documents with the details (ON)
Editor
/ Owner - November 14, 2020
Q: I’m a dog owner and looking to leave my house for a condo. How can I know that having dogs in my new condo won’t be a problem? Read the Q&A………………………………..
What Is An HOA Initiation Fee? Is Charging Homeowners Legal?
Editor
/ Owner - November 10, 2020
Is your homeowners association charging you an initiation fee? Are you wondering if the association even has the right to impose such a fee against you? Here is everything you need to know about an HOA initiation fee. Read the article…………………………………..
What is an HOA Transfer Fee?
Editor
/ Owner - November 1, 2020
When buying or selling a home, we know that some may be caught off guard with unexpected fees at time of closing. The HOA transfer fee is one such “hidden fee” that often takes people by surprise. This is a one-time fee that occurs when a property is transferred from one owner to another. […]
Think Ahead to Ensure If Your Community Association Can Legally Deny Applicants (FL)
Editor
/ Owner - October 14, 2020
….When considering a would-be condo or community association homeowner, or leasing applicant, the trepidation is certainly warranted. Outside of the real estate world, if someone with a bad credit history applies for entry into any given risk pool, under most any other circumstances, that person is either denied or pays a financial penalty for being […]
VA Condominium Approval for VA Home Loans
Editor
/ Owner - September 18, 2020
The Veterans Benefits Administration of the Department of Veterans Affairs (the “VA”) is a function of the United States government intended to help the country’s veterans and servicemen. One of the benefits provided by the VA is the VA home loan guaranty program. Through VA direct home loans and VA-backed home loans, the VA loan […]
Living in a neighborhood with a homeowner’s association: 6 tips for finding the right fit
Editor
/ Owner - September 10, 2020
A homeowner’s association (HOA) is a private organization that maintains the quality of a neighborhood. Not all neighborhoods have HOAs, but if you move into an area with an association, then you will pay dues and be expected to follow HOA guidelines. Read the article………………………………
Do You Have to Join an HOA?
Editor
/ Owner - September 9, 2020
You’ve found the perfect house, in the perfect neighborhood, for the perfect price. But then you find out it’s in an HOA and you will be charged a monthly fee. Perhaps this isn’t what you had in mind and you don’t really know much about what HOAs are all about. You may have heard stories […]