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©
2002 Ruth E. Campbell. |
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Frequently Asked Questions Buying
a Home - Q & A
Q: Are condominiums risky to buy?
A: While condos never had the kind of appreciation experienced
by single-family homes in the go-go 1980s, most ultimately have
not lost value, say some experts. And with high prices in many
urban markets and more single home buyers in the market than ever
before, the market for condos is strong. As with any home purchase, you should do your homework about
the neighborhood or development before you buy. In the case of
condominiums, it is important to read the past six months of homeowners
association minutes to see how effective the board is and to learn
about any possibly detracting issues (such as protracted litigation
with the developer). The condominium community has worked hard in the last few years
to overcome image problems brought on by disputes and lawsuits.
Associations are becoming more sophisticated about property management
and taking steps to prevent legal problems and disputes. Other resources:* Community Associations Institute, 1630 Duke
St., Alexandria, VA 22314; (703) 548-8600. * "The Condominium
Bluebook," Branden E. Bickel, B&B Publications, San Francisco,
CA; 1993. Q: Do condos have to be made accessible to the disabled?
A: The 1990 Americans with Disabilities Act does not require
strictly residential apartments and single-family homes to be
made accessible. But all new construction of public accommodations
or commercial projects (such as a government building or a shopping
mall) must be accessible. New multifamily construction also falls
into this category. In all states, the Federal Fair Housing Act provides protection
against discrimination for people with physical or mental disabilities.
Discrimination includes the refusal to make reasonable modifications
to buildings that aren't accessible to the disabled. Two educational brochures, "Housing Rights" and "Discrimination
is Against the Law," are available through the Department
of Fair Employment and Housing by calling (800) 884-1684. Q: Can condos ban smoking?
A: A homeowners association's board of directors can restrict
smoking if it applies to indoor common spaces such as hallways
or recreation rooms. Outdoor spaces are a different story, say
legal experts. Any restriction would probably hinge on local laws
(i.e. if a city banned smoking outdoors, a homeowners association
probably could restrict smoking in its outdoor spaces). Typical covenants, codes and restrictions (CC&Rs), which
govern condo associations, give the board authority to make and
enforce reasonable rules for the use of common property. But that
would not apply to interior spaces owned by smokers themselves. Resources:* Common-interest development brochure available free
from California Department of Real Estate, Book Orders, P.O. Box
187006, Sacramento, CA 95818-7006; (916) 227-0938.* Various Internet
sites specializing in common-interest developments, such as those
operated by the Community Associations Institute and CIDNetworks. Q: Can a condo association ban nudity?
A: Could you sunbathe in the nude on your own balcony?
Not necessarily. In a condominium development, a balcony is not
considered private property but common property assigned to your
exclusive use but a common area nonetheless. Covenants, codes and restrictions (CC&Rs) usually spell out
what activities can and cannot be conducted on common property.
Some associations prevent people from barbecuing on their balconies
or hanging large plants from the railings. However, the larger
issue of regulating personal conduct is not so clear-cut. It literally
depends on what side of the fence you're on. If the sunbather can be seen from a public vantage point -- not
by someone who must climb a tree or peer through binoculars --
then the rule probably would be considered reasonable, say legal
experts. Incidentally, there are places where nudity is tolerated but
again, only out of public view. Q: Are condos a good investment?
A: Condominiums have held their value as an investment
despite economic downturns and problems with some associations.
In fact, condos have appreciated more in the last few years
than when they first came on the scene in the late 1970s and
early 1980s, experts say. While there are lots of reports about homeowners association
disputes and construction-defect problems, the industry has
worked hard to turn its image around. Elected volunteers who
serve on association boards are better trained at handling complex
budget and legal issues, for example, while many boards go to
great lengths to avoid the kind of protracted and expensive
litigation that has hurt resale value in the past. Meanwhile, changing demographics are making condominiums more
attractive investments for single home buyers, empty nesters
and first-time buyers in expensive markets. Q: Where do I get information on condo association laws?
Q: Where do I get information on condos?
Q: Are one-bedroom condominiums a good investment?
Q: How do I figure out the homeowners association?
A: Learn everything you can about the homeowners association
before you buy into a development governed by one. The association's
financial, political and legal conditions are very important
to your investment and quality of life. When run properly, homeowners associations maintain the common
grounds and keep civility in the complex. If you follow the
rules, the association should not intrude on your privacy or
cost you too much in association dues. Poorly managed associations can drag down property values and
make living there difficult for residents. Start by studying
the association?s covenants, codes and restrictions, or CC&Rs,
and find out if you can live by them. For example, if the rules
prohibit loud music after a certain hour and you like to play
your CDs late at night, this may not be the place for you. Don't
move in thinking you can get away with violating the rules or
change them later because you may find yourself in turmoil with
determined neighbors firmly in control of the association board. Find out all you can about the association's finances. Beyond
reviewing the budget, talk to the association treasurer and
find out if dues are expected to increase and if any special
assessments are planned. Ask if special inspections have revealed
problems with roofs or plumbing that may cause a dues hike or
special assessment later on. Call and meet with the association president. If you are the
type of person who despises intrusions into your private life
and the president seems more interested in gossip about the
residents than maintaining the property, this may not be the
right condo complex for you. Speak with residents to get their views on the association's
finances, its property manager, how it operates and any politics.
Associations are volunteer organizations with elected boards,
like a mini-government, so politics can enter the picture and
spoil a good thing. Lastly, take some time to understand how homeowners associations
are organized and how they conduct business. Like all real estate
investments, the more you know the better off you are. |