Condo Association Management Blog

Run - or... you could always deduct the total assessment cost if you know it, from the sales price of the condo. The owners of the condo are going to have to figure it out before they sell one way or another.  
 
 
 
I would also go door to door and ask a number of owners what other issues there are. This should have been discussed with their real estate agent too. Agents don't want to know the "problems". Don't ask, don't know.  
 
 
 
Two new owners in our building were not informed of upcoming large repairs that were slated to be done about the time they closed.  
 
 
 
"Based on the exact wording" of the Resale Certificate in Missouri the Property Management Company that filled in the form did not have to disclose that we were going to be having an upcoming assessment for work about to be done - we all knew about it including the Property Manager. Each and every time we do work, we agree to do the work after months of arguing, they get the bids, then we assess since our budget doesn't cover major expenses. Same way every time. We'd been talking about this work for over 1 year.  
 
 
 
Again, the property management company knew it was going to be done because it was in our "plan" for the year. It was a step by step process with this expense being done last.  
 
 
 
The way the Resale Certificate in Missouri is worded - they didn't have to disclose this.  
 
 
 
So both owners have now gone back to their realtors who don't want to get sued and the realtors have gone back to both owners to see what they can work out.  
 
 
 
If either of these new owners had talked to any one of us - we'd have told them what was going on.  
 
 
 
Good luck. This is a huge assessment - what else in the long run could be this huge at that property?

I would like to know the same thing. Is it normal for condo. assoc. to operate in the red?

It is really your decision in staying or leaving, you have to analyze what is best for you now and in the future, a lot of association in Florida has the same problem, but with time and good management all this problem will start to come to an end, primary because all the units are begin sold for a bargain price and people are purchasing it, this translate in more income to the association to cover their debts since members are paying their assessments and the association will operate adequately. 
 
Association is a business and like a business can operate in RED or GREEN, everything comes how is managed by the Board of Directors and the management company (if applicable). 
 

It appears that DUE DILIGENCE was sorely lacking in this agreement!! 
Although it may be costly, DUE DILIGENCE is a good investment!!  
For what it is worth and if possible: Stop the Closing!!!!!! 
Due Diligence is Paramount!!! 
STEP # ONE : Stop the Closing!!  
Step # TWO : Get back all monies you have thus far extended into this "Deal"!  
DUE DILIGENCE is a MUST!!! 
DD means examining ALL documents (including any and all assessments and taxes owed and due, and not paid by the current owner, and all previous assessments and taxes dealing with this property for which you may become responsible BEFORE signing any Legal and/or Binding Contracts. 
It is much easier to REFUSE (Walk or Run from) a bad deal than signing into a bad deal and reaping its horrific consequences. 
My DD would be to seek competent legal advise for a thorough examination of all deeds, rights of way, covenants , including true and certified ownerships (not imagined-not guessed at), and certification ( ie : with certified Tax , filed legally, competently. and properly) with the municipality and county and state authorities. 
 

Actually, in Florida a condo is a not for profit corp and while they may have shortfalls, they Board has a fiduciary duty to try to collect and then technically are supposed to go to the member owners for special assessments and nobody wants that! But in this economy, sadly yes, many Associations are running in the RED, unfairly leaving the burden on the paying members to keep the amenities operational.

I was just confronted by a realtor to sign a Resale Certificate stating that there is no special assessment. This selling owner has blocked every effort to get one passed via vote and told me they would never pay any assessment - they are dumping the property now. We are a very small Condo - 7 units and must have an assessment to get vital maintanance done - I'm talking - the siding is falling off the building etc. Similar story as other smaller complexes, in-fighting no one wants to pay an assessment and those that do are manuevered by the others by constant requests for bids - re-bids ... 
 
My situation - I don't want to sign a document that states there is no assessment! Technically since I don't have a vote - there isn't but I 've had it in meeting notes and featured on all finacial reports for years. I don't want to be a part of deceiving a future buyer since it will be significant money. How do I follow the law and keep my integrity and honesty?