Home Buyers: 3 Legal Issues That You Should Consider While Shopping For A Condominium
If you're like most people who want to live in a condominium, you made your choice because of the conveniences and amenities that come along with such a living arrangement. Since there are so many on-site amenities and maintenance is taken care of by the Home Owners Association (HOA), condo living is almost worry free. However, there are certain legal issues that can arise when you purchase a condo that you wouldn't have to consider if you purchased a house. Following are three issues you should consider while shopping for a condominium.
HOA Regulation Violations
One thing that comes along with condo ownership is a membership to an HOA. While you probably already know that you will have to pay an HOA fee every month, you should also consider how living under the rules of such an association may affect your life. Most associations have rules and regulations that you must abide by concerning how you live, how much noise you make, etc. If you break any of the rules, you will be held legally liable and may even be sued by the HOA. Ultimately, refusal to abide by the rules of your HOA could result in fines and may even result in the loss of your home.
Most condos are sold by investors rather than individual homeowners as is the case with single-unit dwellings. This is concerning because the investor will likely own more units in your building after you purchase yours. And they may continue to manage the HOA. Lawsuits filed against the investor as well as any public financial woes will affect the resale value of your home. Banks simply do not like to keep lending money on units in a building that is probably going to go bust. Additionally, new buyers will not want to become part of any lawsuit concerning the building.
Selling a condo is much more complicated than selling a house. Many condo boards require buyers to fill out an application and agree to certain rules before they can legally purchase the unit. Additionally, some boards have stipulated that they must also approve buyers before a transaction can be made. As you can imagine, this greatly affects who can and who will want to buy your unit.
Condos have many legal stipulations that you must abide by. If you're unsure how the rules of your building affect you, contact a real estate lawyer who will be able to explain your rights and responsibilities to you. Reach out to a firm like Bangs McCullen Butler Foye & Simmons LLP for more information.