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Sale Of Common Area Property Of Homeowner Associations All Locations : Nationwide Real Estate Advice

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Showing results for sale of common area property of homeowner associations [Clear search]
Fri Feb 3, 2017
Randall Sandin answered:
Hi Cindy - It most cases no, they can put a lien on the property so that the owner cannot sell the property or borrow money against it without paying off the hoa/regime lien first.

Hope that helps,

Randall Sandin, 843-209-9667, rsandin@carolinaone.com
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0 votes 25 answers Share Flag
Sat Feb 1, 2014
Richard Haenke answered:
Ethan:

Hello and great questions! There has been a fair amount of this type of activity in Austin in the last couple of years largely due to the general economics of being able to sell two units versus 1 duplex. Duplex's have traditionally been great rental vehicles and could only be sold as 1 package (2 units = 1 sale). With the creation of a 2 unit condo, you could actually sell the units individually. This opened up a part of the market to buyers that did not exist - get a more "single family" type residence with generally only 1 common wall. This is something that is appealing to both buyers and sellers. Before the creation of the 2 unit condo, sellers would need to seel the both sides to the same person or group. Now, they can go after a more traditional condo buyer.

Also, most deeds for duplexes specifically state that the land can not be subdivided - split it apart and sell the units seperately - this would be more closely related to a townhouse. Because of this, the land itself is owned by the association with ownership rights granted to each owner for the common interest.

There are definitely pro's and con's to the arrangement. If you buy one to redo (duplex), keep in mind that there are two of everything as you redo it (fridge, ac, stove, bathrooms, floors, etc...). Make sure that you factor these things into the overall expense.

The creation of the condo association does require legal documents to filed with the state about the creation and ongoing care and feeding. This can be done through an attorney. I have specfically worked with Julie Alexander's office in Austin to do this. She and her Team have done a considerable number of these conversions. She is top notch.

Now to answer your specific questions:

1. Answered above - greater opportunity to sell and attract a buyers that you would not have traditionall with a duplex.

2. This is true. You will establish as the developer the starting point of the HOA. Yes you can dissolve the condo association through the legal process, but you will not be able to own the units individually - most likely due to deed restrictions. You may be able to own them together. It could be turned into a single family home, but again would require legal assistance to uncovert from a condo. If it would ever loose its desigation as multi unit - even though you could buy both sides as well as open it up to make 1 home.

3. Benefits without dues... This really should be driven by the units, homeowners and needs of the hoa. I have worked with one recently where the HOA dues was only for water. It was established at 50 per each side per month. There was 1 water meeter coming into the structure. The HOA could actually decide to increase this to include lawn care or other items for the common benefit. Insurance is another thing that dues usually cover for the common area. Depending on the structure - different roof lines that can be insured seperately may allow no common area insurance. AGain, you will want to consult an attorney.

4. You will want your legal formation documents to clearly state how things are to be resolved. You need to understand that going into it you are still sharing a wall with someone. This is pretty close to single family ownership - but not 100%.

Hopefully this has provided some extra help in understanding how these have come to be. I would be glad to talk further if you have an interest.

Thanks
Ritch Haenke, Realtor
Coldwell Banker, United
512.633.3909
rhaenke@sbcglobal.net
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Wed May 27, 2009
Michael D Delp answered:
Ronnie,
These fees vary from development to development. Some cover things like trash pick up, snow removal mowing lawns of common areas. They are not to keep your home in good repair but meant to keep the common areas in repair. I hope that helps. Feel free to contact me with more questions. The best of luck to you!
Michael

Michael D Delp
Mortgage Pro
4802 Old Bethlehem Pike,
Telford Pa. 18969
Ph- 215-453-1025
Fax- 215-453-1012
Cell- 610-762-0318
michaelddelp@aol.com
michaelddelp@verizon.net
www.mortgagepro.instantlender.com
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Thu Jan 28, 2010
Don Tepper answered:
Read your condo documents. However, in the condos I've owned, you cannot buy and sell limited common elements. Those (as you know) are elements/areas available only to you, or to a limited number of residents, but which are common elements, and thus owned by the condo association. While you're receiving a right (usually an exclusive right) to use them, you don't own them.

Again, though, I'm not a lawyer and I don't know what your condo documents say. But I'm quite confident that your condo documents (which very likely will address the subject) will not allow you to buy or sell limited common elements.
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Fri Apr 28, 2017
Deborah Madey answered:
Generally increase. They mandate standards of care and maintenance that bring values up. Ulitmately, it can vary according to how good of a job a particular HOA does.

For those that manage budgets well and keep things going well, it will have a postive effect on valuations. ... more
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Wed Apr 2, 2008
Victoria Lorusso answered:
That completely depends on the health of the organization combined with the leadership and management company. Enough funds need to be collected as a reserve for future repairs and or failures. There must be a board of directors who get along with each other and have a common goal and a management company who makes sure the grounds are maintained and dues collected. ... more
0 votes 10 answers Share Flag
Wed Feb 9, 2011
Melissa Mancini answered:
Hi There,

In my community, a detached condominium is free-standing, like a single family house, but all of the land the homes are situated on within a particular development are owned by the entire association, not just the unit owner. Builders in my market do this to get around minimum lot requirements and to offer reduced tax and insurance bills to the residents while maximize the units they are able to sell individually.

Melissa Mancini, Realtor, CBR, GRI
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