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Introduction To Buying A Condominium.
A condominium is like an apartment you own. You own the title ("fee simple") only to the "air space" inside the unit you purchase. If you are planning on purchasing a townhouse, by contrast, you also own the land on which the unit sits and the air space above it (up to about 500 feet). Both the condominium and the townhouse share common spaces such as: walkways, landscaping, parking, recreational facilities (pool, gym, spa) etc., which are shared by all of the owners in the development.
To maintain the common spaces, the homeowners' association will require the payment of a monthly fee (dues), which hopefully will be sufficient to cover general repairs and maintenance of the common areas of the complex as well as (hopefully) a build up a cash reserve for future needs. Unfortunately, most homeowner associations fail to levy a sufficient monthly fee which often results in the imposition of one or more "special assessments" (a one-time charge assessed to each owner to cover some exterior maintenance or repair such as a new roof). These special assessments often times can range from $1,000 to $10,000 per unit.
Common Problems Encountered With Condominiums.
There are three common problems faced by condominium owners. The first is the real potential for the homeowners' association to levy a large special assessment against each and every unit in the complex. The second is the real risk that individual homeowners will bring a lawsuit against the homeowners' association, which can severely impair the individual homeowner's ability to refinance and/or sell their units. The third is the delay that often occurs when repairs and maintenance are needed, which often causes the property value to deteriorate.
Before You Buy a Condominium.
Needless to say, this list is not meant to be exhaustive. When buying a condo it is important that you understand all of the documents, including the bylaws, the CC&Rs, and the condominium rules. If you are unsure about something, do not rely on the statements of the broker or agent; remember their main priority is getting a commission which only occurs if you buy or sell that condo. Getting an opinion from a local real estate attorney could be money well spent, and typically is provided for a relatively low fee.
In addition to all of the above which is particular to condominiums and town homes, a buyer should also ensure they have checked all of the items set forth in our Home Buying Checklist.
If you need further assistance, please call 818-849-5206, or email Melissa C. Marsh. Although many home buyers and sellers forgo the use of an attorney, in those purchase and sale documents that I have had the opportunity to review and revise, I have saved many of my clients thousands of dollars.
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Disclaimer: The information presented on this web site was prepared by Melissa C. Marsh for general informational purposes only and does not constitute legal advice. The information provided in my articles and alerts should not be relied upon, or used as a substitute for professional legal advice from an attorney you retain to advise or represent you. Your use of this Internet site does not create an attorney- client relationship. Transmission of this article is not intended to create, and receipt of it does not constitute, an attorney-client relationship. All uses of the contents of this site, other than personal uses, are prohibited. You may print or email a copy of any information posted on this web site for your own personal, non-commercial, use, but you may not publish any of the articles or posts on this web site without the Express Written Permission of Melissa C. Marsh.
Located in Los Angeles, California, the Law Office of Melissa C. Marsh handles business law and corporation law matters as a lawyer for clients throughout Los Angeles including Burbank, Sherman Oaks, Studio City, Valley Village, North Hollywood, Woodland Hills, Hollywood, West LA as well as Riverside County, San Fernando, Ventura County, and Santa Clarita. Attorney Melissa C. Marsh has considerable experience handling business matters both nationally and internationally. We routinely assist our clients with incorporation, forming a California corporation, forming a California llc, partnership, annual minutes, shareholder meetings, director meetings, getting a taxpayer ID number (EIN), buying a business, selling a business, commercial lease review, employee disputes, independent contractors, construction, and personal matters such as preparing a will, living trust, power of attorney, health care directive, and more.