What does it mean for a condo HOA to be in receivership? Should I be concerned?

Asked by Ann Du, Austin, TX Mon Jul 14, 2008

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7
Carol Pease,…, Agent, Austin, TX
Tue Jul 15, 2008
The answer is yes you should be concerned. Receivership means that the condo association may not be solvent. This could be due to a lot of factors. Members may not be paying their dues. The association could have been sued. There are all sorts of scenarios that could have happened. You need to proceed with extreme caution. This is not a good thing.
1 vote
Richard Haen…, Agent, Austin, TX
Mon Jul 14, 2008
UT Horn:

Proceed with caution. This is an area where you will want to understand all of the details before proceeding. There is more risk in this transaction due to the uncertainty of the future of what will happen with the HOA.

Your realtor should be able to help sift through the facts to make an educated decision.

Thanks
Ritch Haenke, Realtor(R)
Coldwell Banker, United
512.633.3909
rhaenke@sbcglobal.net
Web Reference:  http://www.richardhaenke.com
1 vote
Scott Godzyk, Agent, Manchester, NH
Thu Sep 12, 2013
YES, it usually means they are bankrupt or could not handle their own finances and have been taken over through a court appointee.
0 votes
Condo By Laws, , Florida
Thu Sep 12, 2013
Condo Receivership in its easiest terms means that the HOA got into trouble and there is now an appointed party to look after the association. There are complexities to this and you need to be careful if you are a buyer or a owner within an association in receivership. There are more details in the article below about what exactly it all means to you.
0 votes
Ron Thomas, Agent, Fresno, CA
Wed Jan 18, 2012
Receivership means that the HOA is in Bankruptcy and a someone has been appointed by the Court to oversee daily operations.
This could mean that it will emerge from Bankruptcy.
Or not.
Do you want to bet on this horse?
0 votes
Blaine Dunlap, Agent, Kerrville, TX
Wed Jan 18, 2012
There are a lot more condo's than there is money. This means a lot of things and they are all bad.
Current residents are not paying their dues.
The fees are obviously going up, not only to cover current expenses, but the deficit.
There is probably some BIG problem that costs A LOT of money. That is spelled SPECIAL ASSESSMENT.
There are a lot of good condo associations, buy there.
0 votes
Bruce Lynn, Agent, Coppell, TX
Mon Jul 14, 2008
I would buy with extreme caution. This likely means the HOA is bankrupt. That could mean deferred maintenance for the building that you will need to pay for. Could mean increased dues. Could mean special assessments. Could mean maintenance costs are higher than anticipated. You need to find our more info about the history and why it is bankrupt. Talk with the president of the HOA and some residents. Proceed with caution.
Web Reference:  http://www.teamlynn.com
0 votes
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