Your client is looking forward to owning a home without the hassle of lawn care, and you found a new condo they’re dying to move into. The Condominium Association handed over a thick stack of papers that covered rules and regulations. Maybe your clients just skimmed through them, but it’s time to look closer.
Understanding rights and responsibilities before signing the dotted line is essential for clients to enter their homes with peace of mind. Condo association agreements cover…
- Rules and regulations: Condo associations may have the power to set rules that all residents must abide by, such as quiet hours, parking rules or pet restrictions.
- Fees: The association agreement may cover an array of costs, such as fees to the association itself or fees to cover utilities.
- Maintenance responsibilities: The agreement may outline which parts of the building and grounds are the responsibility of the association to maintain and which are the responsibility of individual unit owners.
- Capital improvement projects: If the association must undertake large-scale projects, such as replacing the roof or repaving the parking lot, the agreement may describe how the decisions are made and who pays for them.
- Board of Directors: The board members own units in the building and are usually voted into their position by other unit owners annually. The association agreement will describe how they're voted in and their powers and responsibilities.
- Enforcement measures: The agreement may describe the association's measures if a unit owner violates the rules or fails to pay association fees.
Condo associations have many powers spelled out in this paperwork, but they are not unlimited. Knowing their limits is crucial, so knowing condo owner rights is critical. (Check out this condo owner’s dilemma.)
So before closing on condos, encourage clients to read the association agreement thoroughly so they can live happily ever after in their beautiful new home!
