Condo Association Management Blog

This sounds like a very dangerous undertaking. There would be two owners, and the entire maintenance would fall on the two of you instead of six of you. You're asking for trouble money-wise and later legal-wise.  
On the other hand, I would talk to the other owner; and I would pay a lawyer to spend some time with you. You'll need a lot of facts about the status of the other units.

Who will shovel the snow? Who will maintain the roof? Who will pay for the oil to heat the common areas?  

This could be a once in a life time money maker. But you must do plenty of work before you puts your money down. I say, accountants, lawyers, experienced businessman must be contacted.

because of your comment "four of the six have been forclosed", i have to assume that ownership of these four units have been transferred to "others", probably financial institutions. therefor if all six are owned by six responsible owners, you have to get them all together and form the assn. if the units are in the process of being forclosed, you probably have to wait until the forclosure is complete and then follow up with the above suggestion. otherwise....don't buy into this can of worms !!

If, as you state, the building is a condominium it means that the bylaws of the association must exist and would have had to be registered at your circuit court. I suggest you contact the clerk of the court and check thisd out. If the bylaws are on file get a copy.

I have a friend who lives in a duplex condo. She and her "roof partner" have their own association. They have a roof reserve, snow removel and grass cutting reserve. If they have any other problems in their individual condo, they pay for their own. I wish I had that arangement rather than a condo association to deal with. They have had no problems, and love this arrangement. She's been in this condo for ten years.

To I have a friend--I doubtg your friend is living in a condo. Becoming a condo rwequires that a set of by laws be submitted and registered at your circuit court. Your friend has an "arrangement with her neighbor but that doesn't qualify the building to be a condominium

First, thanks to everyone one for the  
feedback. Next, in the event that I get a copy of the bylaws from the city clerk - what next? 
 
C I C

A condo exists prior to first sale to anyone other than the developer/builder.  
Except when several professionals in related businesses all "blow it," a mortgage will not have beem provided on separate units without the legal parts being in place. I have encountered a very few of these mistakes and worked with legal counsel and others to correct the mistake. 
There is a difference between a non-functioning condo (sounds like this project) and a building where the legal work was not completed.  
The mortgage company selling its unit should be able to provide some answers - copy of the legal documents, insurance coverage for building, etc. If insurance is not in place, then each mortgage company underwriting each unit is obtaining insurance at a higher than market rate for insurance.  
Depending upon the location, there may be professionals to provide guidance.  
Due to foreclosure, a client of ours lived in a 4-unit condo for year assuming all of the responsibility until other properties were resold. 
 
As to the 2 unit building, it very well is a condo if there are separate deeds for each unit. Owners in a situation like this may resolve their obligations without following the documents. As long as the two same owners remain and no problem arises, this situation may survive through their ownerships. Only when one of the two units sells will the issue of documents become necessary to resolve. Better to review things while no issues are present.

why would you even consider buying a condo with so many problems 
 
first, why is over 50 per cent of  
 
the units in foreclosure 
 
i live in a 96 unit condominium and about 25 per cent are empty with foreclosures,thus the remaining homeowners have to pay more in maintenance fees to cover the costs of maintaining our community 
 
i suggest you look for another condo 
 
 
 
 
 
 
 
 
 
 
 
 
 
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This could be an opportunity or ??? 
 
I bought my condo under similiar conditions. It is a 7 unit complex and 6 were in foreclosure. Mine was a Fannie Mae repo. In my case one Bank owned the 6 Units - and they paid all bills until the 6 units sold. Mine was separate for some reason? This caused problems for me, since the Bank would only pay for the 6 units on projects - eventually I did get covered.I was young and my first home purchase so I didn't understand all the rules as well back then (1987). Once the Units were sold the Bank had a meeting with all 7 units and turned the operation of the HOA over to us. I found out later there had been an operating HOA in the beginning and a management co ran off with all the funds. This has plagued us since as we lost a good 10 years of Reserve. So do your research, sounds like the realtor is leaving a lot to you to figure out on your own. Check state laws, check who actually owns the Unit and the others, will that party maintain others units until all sold? Nancy also brings up very valid concerns over Insurance and the possible non-completion of legal docs. Most states now have laws in place to protect the perspective buyer. Good Luck. Even with all the challenges I don't regret my purchase and the lower purchase price has kept me in a home during hard times.

I am the 11th response on the same day on your question. 
I think you need to watch your share of the Reserve fund and the whole amount and see if it is accounted for. 
As condo unit owner, you are protected from having to pay for expense of the whole condo maintenance. 
However, as condo owner, your Association's Reserve fund or money in bank often need you to keep an eye on. 
You can contact the seller of the foreclosed units (bank) and volunteer to be vigilant on the affairs of the condo association as a resident member.

I lived in a two unit condo in Hancock Park,LA. It worked. Of course, my wife and the other other were close friends.

@ Scott There are four or five such condos on one block in our complex. The condos around them have an associations. All were developed by the same builder. This is in Illinois, My winter condo in Fl, has a complex next to it. They have ten, two story buildings with four condos in each. Each building had their own associations for the last 20 years. They just decided this year, 2011 to go to management. It worked for them all these years. If I had a choice when I bought my condo in Ill,I would have chosen the duplex condo.

who will lend on condo's with no assn

I believe I am correct ewhen I say that very state has a law-Condominium Axt win which the requirement for a council of unit owners and condominium association are required.It is not possible for a condominium to b operate outside the laws of the state in which it exists.

I have owned 4 condos in a 40 unit complex for about 5 years. What a pain. The biggest problem is they are impossible to sell unless they have a healthy reserve account. The FHA, Fanie-Mae and HUD require this emergency reserve account before they will garantee a loan. I have made money renting my units, but I have no possibility of selling the unit anytime in the future. In california, a new law is coming requiring a certain level of reserve account. This sounds good, but if a association is on the edge with little or no reserve account currently they will go belly up.