What do I own? (Part I)
Filed Under Buyer's · Tagged: Condo Ownership
Q: What would I own, if I buy a condo?
A: The answer depends on the properties legal description;
If the word “Condominium” appears in the legal description without any mention of a lot or plat map, most likely you are buying the rights to the air inside the unit, and that would be it. Everything else; the structure and the land underneath it, would be considered property of the Home Owner’s Association (HOA).
If the word “Condominium” does not appear in the legal description, but a mentioning of a lot or plat map does, you are buying rights to the land and the air inside the unit. However, the structure would be considered property of the Home Owner’s Association.
Monthly HOA dues are collected by the Home Owner’s Association for the maintenance and upkeep of the property.
In either case, you are buying into the HOA. This is where you would have your Realtor do some research. You would want to know several key areas of it’s history. Some items to consider;
- HOA financial status.
- HOA Management company (there are a few bad ones out there).
- Any potential raise in HOA dues in the near future.
- Is there a FUTURE or PENDING or PAST litigation case involving the HOA / owners.
- Any Special Assessment pending.
- In a future blog I’ll explain what a ‘Special Assessment’ means to a Condominium owner.
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