Condo Association Docs: The Good, The Bad, And The Fine Print
Here’s more on what to look for when reviewing that intimidating stack of paper known as the Homeowner’s Association Documents.
3. Special Assessments. Review the history of them, how often, for how much, and why. This will also give you a clue as to how the Association is run. Some associations try to keep HOA fees low, and wait for something to happen; others charge higher fees but bank the excess so they’re ready when that rainy day arrives and the roof suddenly needs replaced. You’ll sleep a lot better if you know the reserves are strong, and the Association is ready when something does happen.
4. Rules and Restrictions. Sometimes, rules are minimal. Other times (typically with larger associations) there are rules governing issues you didn’t even know could be issues. Pets (size, number, and type of animal) are almost always covered; some associations have rules on barbeques, satellite dishes, quiet hours, etc. Usually, they’re based on common sense and a sense of fairness, so most people can adapt if necessary.
5. Maintenance. Who is responsible for what? In Marin County, typically the HOA covers the outside, you take care of the inside, but always check. For example, what about decks? They’re attached to the unit, but on the outside of the building. Find out now, not when something needs to be fixed later.
6. Other issues. Does anything else stick out? For example, are there any ongoing lawsuits? That may sound scary, but we recently sold a condo in which the Association is suing the City of Larkspur over a landslide. It’s fully disclosed, and if the Association wins, the owners will actually benefit, so it’s not a major risk.
The law has changed a lot in the last 10 years, and the mountain of paperwork involved now in buying a house or condominium in Marin County is intimidating. This is all in the interest of protecting the consumer; ironically, I think it has the opposite effect and people don’t bother to read everything.
Condo docs are not a place that you want to do that. Take the time to study, and you’ll make a much more informed decision about your new home.
