Real Estate Investing : Community Association Factors
Membership in the condominium Homeowner Association (HOA) is a requirement for condominium owners; a poorly managed community can expose HOA members to significant financial liability.
Maintenance & Repair of the Common Elements
Common components such as the roof, building envelope and elevators a few big-ticket items that, if not property cared for, could result in a special assessment of $1000’s for a new condo owner. A home inspection determines the condition inside the condo, it’s also important to determine the condition of the major common elements,
and to verify the existence of a Reserve Fund, for equitable allocation of expenses for the periodic
repair/replacement of the major components
Financial & Legal Issues
Legal issues (lawsuits, foreclosures) and unpaid assessments or a the lack of a reserve fund (for the projected repair/replacement of common elements) could mean the new HOA member will be responsible for an inequitable, financial liability.
Advocate vs Salesperson
Caveat Emptor – “Let the Buyer Beware”
Both Florida and Alabama are “buyer beware” states and, while a seller and their agent are obligated to disclose any “known” adverse conditions, there is no requirement to disclose or discover unknown adverse conditions. It’s important to vet real estate agents, many are “transaction brokers” or a “sellers’ agent” or a “dual agent” that represents the buyer & seller (illegal in Florida) – in these agency relationships, the buyer receives minimal assistance. Always work with an experienced real estate agent that has a fiduciary responsibility to protect your best interest.
Buying resort property is challenging, especially when there is a homeowner association involved. If you’re interested in buying a condominium home, always work with a PreferredPartner™ - visit:
Wayne Moore
Lic. Real Estate Broker
Licensed Home Inspector
Lic. Community Assoc. Manager
Life’s a beach in Pensacola Florida, where the weather is warm and the popular outdoor lifestyle offers an array of activities. There are numerous sights for the entire family, including the National Aviation Museum, Fort Pickens, the Pensacola Lighthouse, historic downtown Pensacola and, of course, the popular white-sand beaches at nearby Perdido Key and Pensacola Beach. Additionally, there is an abundance of shopping, dining & entertainment venues available.
