It depends on what you consider normal but it is not at all unusual for an association to charge a capital contribution to new purchasers in the community. While it is in the minority of transactions it does happen and at times might signal well run management of the association that has a good handle on the finances. There are also some situations where the association is having financial issues and are using theses funds in an attempt to dig themselves out of a whole. In any case when you see a capital contribution it must be paid but you certainly could negotiate to have the seller pay these fee during contract negotiations.
Be very careful when buying into any association to fully review the financials during your negotiated contingency periods or you may end up with a future expense that you were not experiencing and it can be a big one. So may buyers see "deals" on the internet and jump on the opportunity and this can be an expensive lesson so be careful.
If you would like assistance in defining your real estate goals and putting in place a plan to meet those goal please feel free to contact me as I would be most happy to assist you. I hope this information is helpful but if you need anything additional please do not hesitate to give me a call.
Always at Your Service,
Tom Priester e-PRO
"Results Driven Real Estate"
Keller Williams Realty
Many condominiums in Boynton Beach have had owners who did not pay their fees, so there may be a shortfall. However, many very well run Boynton Beach condos do not have a shortfall at all because this mandatory capital contribution helps keep the association solvent in case of a rainy day.
If you are unhappy with this fee. ask your Boynton Beach realtor to help you to find another condo that does not require a large sum up front. At the moment, we do not seem to have a shortage of available condfor sale in Boynton Beach.
Marc Jablon, The Jablon Team
RE/MAX Complete Solutions
how such a " Capital Contribution " is to be applied and to whom! Condo
Associations and HOA's make "special Assessments " agains towners-
they do not solicit " contributions " from buyers". The term" Capital Contribution"
is not a term Associations would use.
This amount probably involves covering a "Special Assssment" but when it
was or -Is due , would clarify if this is a charged being passed on to you -
remaining un-paid from the past or pre-payment on an upcomming charge
due iin the near term and after closing as established previouslyby the
In any event this would be a "Community Specific" or "deal specific " charge-
NOT normal and customary.. This could involve a "bail-out " for maintenance
fees being too low, "Shadow Inventory " burdens, or for funding some
Special improvement/initiative the membership has previously approved.
Definately time to consider the financial health of the Community involved' and the possiility of
So how do you figure? Simply this deal $3500.00 more than your accepted offer!
My advice is to get an attorney skilled in condo law and issues to help sort all this
out. Then if it makes sence "go for it "If not you will have saved many times
the cnsultation fee ! Best of Luck! get the help you need!
Based on the amount you mention this condo is most likely in Meadows on the Green. They were a condo conversion several years ago. A large portion of the condos were purchased by investors. As the market changed the buyers stopped paying their mortgages and condo dues, thus a shortfall in the amount the condo was taking in to pay their bills. They are now trying to build up their operating budget by charging new buyers the capital contribution.
There are many short sales and foreclosures in this community. Most resales are then rented out.
Let me know if you have any other questions.
JOAN LORBERBAUM MOORE
Broker Associate, GRI
9858 Clint Moore Road
Boca Raton, FL 33496
If, you have more questions - call me anytime.
Kimberly Kirkman, Realtor
Century 21 Tenace Realty