Condo Association Management Blog

If ever a question demanded a call to an attorney this is that question. No one can answer this question without being 'on the ground,' familiar with all aspects of the particular situation,and qualified to practice real estate law.

Dead Eye is right. All that we can say is blah, blah, -- blah, blah...meaningless without a lawyer--

What do you mean by saying the HOA is "technically in place but not active"? As long as there is a board of directors managing the affairs of the assn then there is an HOA. Only if the HOA had been terminated would there not be one, thus taking away the liability of the members to pay assessments. You do not "sign up for the HOA", you are automatically a member when you take title to your unit.  
 
I think you need to do some research before you purchase this condo. Try to talk to the other unit owners and get more info about the assn. Is there a board of directors? Are there amenities, such as a swimming pool? Is there a reserve fund? If there is a street within the HOA it would be private which takes a lot of money to maintain. Also the assn would be resp. for the exterior maint of each unit, including the roofs; this also takes a lot of money. These factors contribute to the higher assessments that are normal in condo assn's. 
 
Upon taking title to your unit, you would automatically be a member of the HOA. This is not an organization that you choose whether to join or not. If you fail to pay your assessments you would be subject to late fees. Continual refusal to pay could result in foreclosure action against you. As an HOA member its important to pay your assessments even if you have a dispute with the HOA.

THERE most likely was not an HOA. There is a condo!  
 
If you have an agent, have them do their homework before you retain legal counsel. If you don't have a Selling Agent, you need to stop process until you are provided with all required information per the State (or DC) condo law.  
 
Read the documents prior to any billable time with legal counsel. Mark questions, etc.  
* building description of common (shared) and limited common elements 
* responsibility for building repairs 
* insurance - you certainly don't want your mortgage company insuring the entire building at your expense.  
* funding for required condo obligations (doesn't stop just because of forelosures) 
 
Make sure any legal counsel is familiar with condo law for your jurisdiction!  
Following purchase, you become part of the solution. Who are your "partners" going to be?  
 
Serious questions you need answers prior to purchase.  
 
Be an educated purchaser. Otherwise you will pay and pay and pay.  
 

I have no idea what Dead Eye Dick and Prince Hal are talking about and I doubt that they do either.  
 
While I cannot give you a legal opinion, what I can say is that a HOA is legally established as part of the formation of a condominium. Even if owners move or are in foreclosure, or if it is active or inactive (whatever inactive means in your particular situation), it is still one and the same HOA that was legally established when the condominium was legally formed. That it is now inactive does not exempt you from a monthly payment should you choose to purchase the condo, but how can it be approved if the HOA is not active? Something does not gel with what you are saying and it needs further investigation. Your Realtor may not have the information you need, but his broker should and if not maybe he / she can get a legal opinion as this is part of a property sale. And please get all that is told you in writing.  
 
You do not "sign up for the HOA", as you put it, purchasing a condo makes you a part of the HOA whether you like it or not. And you are required to do what the HOA requires you do do. If what it requires is not legal, you can go to court and prove that. Unless the HOA is proven wrong in court, it is considered to be right and you must comply. If you do not, the HOA can use whatever remedies it chooses - fines, liens, foreclosure for non payment of fines, etc. Defending yourself and / or hiring an attorney yourself to get information, is not cheap.  
 
One more thing to consider is this: Local law typically mandates a minimum property size for single family homes, so sometimes builders create condos instead because they can be built on a smaller piece of land (more residences per acre). If you do purchase the condo you may want to find out if the Condominium can be dissolved and in that way turn your condo into a single family dwelling. In my state this can be done. And it requires an attorney, which is not cheap.  
 
Good luck!

I agree with all that Nancy Jacobson says! And I thank her for delineating between an HOA and a condo. In my state (Washington) a HOA is the association that governs a planned community of private homes where there are some common areas that are commonly maintained by the owners collectively, but the homes themselves are the total responsibility of the individual owner.  
 
An HOA functions under a different state law than does a condo. In my condo, we call our association a HOA, even though that is not the correct legal term. The correct term would be a "condo association".  
 
Having said that, I cannot fathom why if you are a HOA and not a condo, four owners would each pay $275 a month (or a total of $1,100 a month / or over $13,000 a year) to maintain a few square feet of shrubs. It makes no sense. So it seems that, as Nancy said, you are a condo. If you are a condo, your monthly fees would pay for things that the owner of a single family home pays in a HOA or in a home that that has no HOA. It would be beneficial to know what the $275 / month pays for.  
 
IT SEEMS TO ME THAT YOU REALLY DO NEED MORE INFORMATION -- MUCH MORE!! 

Condos require maintenance just like any other real estate. If the fees for this unit are 275 per month, ask if this includes both operating cost and reserves as well as monthly maintenance, if so then it's very reasonable. 
 
Now for the best answer given you. Follow Nancy Jacobsen's advice, it's dead on. Lynn is correct as well. 
 
Check out the 3 other families you'll be living with. Very important in a small condo association. Is your neighbor that guy from Friday the 13th? You'll need to know.