Home Buying in Miami Beach>Question Details

Shea, Home Buyer in Miami Beach, FL

Purchasing a condo - all cash.

Asked by Shea, Miami Beach, FL Fri Jul 11, 2014

I'm from New York, and when purchasing a condo in cash (not co-op), boards still want to see full board packages, reference letters, credit reports and detailed financial statements etc. I really don't like the idea of disclosing all this information to boards, beyond standard bank statements to show I can pay maintenance fees and maybe tax returns. What do condo buildings in the Miami Beach/Brickell ask for after an offer has been accepted? Thank you.

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Not all Condo's Require full disclosure. The most important information required is stability and some documentation. Contacting the right person for this kind of a transaction is key. Please feel free to call me and we can go over how I can help this happen for your company.I am currently in contact with many condos in Miami Beach and Brickell specifically. 786-337-0063 Ana McNatt
1 vote Thank Flag Link Fri Jul 11, 2014
Hello Shea,

Yes, full disclosure is required in condo associations (which are sort of like co-ops in NY).
However, you can black out account numbers for privacy reasons, or provide an alternative form of verification like a letter from your accountant/bank reference etc.
Your agent can work with you and your condo association to see how you can satisfy the condo requirements without feeling too exposed financially.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Wed Jan 7, 2015

I think HW is definitely in order here. Not all in fact most will not ask for full disclosure of your financial situation. In fact not all condo's have the right of refusal. I am president, myself, of a condo in Miami and we do a background check and credit check but in reality it's a fine line of what we can and can't do with that information.

You should be cautious in giving out all that info. Feel free to contact me and I can assist with this process.

Javier Olmedo
Keller Williams Realty
0 votes Thank Flag Link Fri Jul 18, 2014
With so many condominium properties plagued by foreclosures and delinquencies, condo associations have learned from experience to do their homework if they don't want to watch their condo building turn into a nightmare. The condo craze that took place in Miami several years back left many condo communities hurting.

Now while I don't necessarily agree with the extremes some condo associations take to approve a new resident. Ideally, you want to buy into a stable, well-run building. Buyers have little chances of getting a mortgage to buy a unit in a building with a high percentage of owners that are delinquent on dues. Fannie Mae, Freddie Mac and the Federal Housing Administration, which buy or insure most mortgages, do not approve condos with delinquency rates higher than 15 percent. Units in buildings that don't meet that requirement are not eligible for financing backed by the three agencies, making it extremely challenging for a buyer to obtain a mortgage to buy the unit or an owner to refinance a unit in those buildings.

Required documentation varies from building depending on the condo association bylaws. All are not alike. Associations approach or reasoning behind asking is purchasing a condo is signing a business agreement with all others who own in the project. And as with any other business venture, its about financial stability.

I recommend looking at several building that meet your objectives and before making an offer perform your due diligence as well. Learn how the place is managed and inquire about its financial stability.
0 votes Thank Flag Link Fri Jul 18, 2014
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