There is a small townhome complex in Apple Valley that I know of with no association dues. The association went bankrupt and there are no banks that will finance a townhome without an association. Without an association, its impossible to predict the integrity of the structure in the future. The listing agent told me that there are no insurance companies that will cover a townhome without an association and you can't get a bank loan with out insurance. This complex is in East Apple Valley just north of Co Rd 42.

Emily,

You're misspeaking slightly about the REALTOR Code of Ethics. The Code prevents agents from initiating a solicitation with represented buyers but does not prohibit a REALTOR from answering questions and/or providing services to a consumer that initiates the contact and is the solicitor.

Hi Richie, it has been a while since you posted your question. I hope you have been able to purchase your home by now. Since you made an offer or were going to make an offer on a property it sounds like you were working with an agent. If you are working with an agent then all of your questions should be asked of them. If you are not satified with the service you are recieving then that is something you should discuss. When you ask another agent specific questions about a property that agent should not answer your questions because Realtor's follow a code of ethics and anything we say may be taken as advice and you are under a legal contract with another agent. If you have not signed an Exclusive Right to Represent contract with another agent then please contact me and I would be happy to help you.

To clarify Michael's point - townhomes don't need to be FHA approved, condominiums do. You can find which ones are approved on HUD's website:

https://entp.hud.gov/idapp/html/condlook.cfm

Most people think of condos as the tall buildings in downtown areas. However, there are several developments that are technically condos but appear to be townhomes (row style homes).

Tim is also correct in saying that a lot of twin homes don't have an association - Oakdale has a lot of those. The good thing is that there aren't any dues. Bad thing is that when something needs to be done on the exterior (roofing, siding, driveway, etc) it is between the 2 owners to decide what to do. It never ceases to amaze me when I see a twin home with only 1/2 the roof replaced.

I'd have my guard up for sure on any townhome development without a homeowners association and monthly dues. If there were ever needed exterior or roof repairs needed, who is to ensure they get done and furthermore, get done to the satisfaction and to match the other TH's in the development? I'd be scared to death of any of my clients buying with no HOA dues. Run........

You talk about two different things here Home Owners Association (HOA) fee and insurance. Could you be talking about the association not having an association Hazard Insurance policy?

Richie,
Some townhouses are not FHA approved was this the case? I have had of lenders doing the work to get the complex eligible for financing. How did the other people finance their homes? Maybe you need a second opinion from another lender.
Michael

Richie,
My first question to you would be, are you being represented by another agent? If not I would be interested in getting the MLS# so I could do some more duediligence on the home for you. I have sold many townhomes in the Apple Valley area and have never seen any that don’t have association dues. The only thing I can think of that you might be talking about is a Twin Home. Twin Homes don’t usually have association fees and they look very similar to townhomes. Please, send me the MLS# of this property and I would be happy to looking into your question further and get you some answers.

Visit: JohnsonMurphyHomes.com

Tim Murphy
Edina Realty
E-mail: TimMurphy@EdinaRealty.com