Closing A Condo Sale With Special Assessments Involved...       

...is quite common these days

Taking the time to understand how they work

and why they come about

opens the door to the widest possible array of properties

for a buyer to consider when condo hunting

condo associations have monthly assessessments (HOA Fees)

they cover common items such as water, sewer, building insurance, common area maintenace

and may also include pest control, electric, cable tv, internet, among other things

a portion of that monthly fee is allocated toward long term maintenence items

such as the roof, balconies, elevators, exterior paint, parking areas

that money is place into reserve fund accounts

so that its available when those repairs need to completed

quite often, these work orders come sooner than anticipated

and there is a shortfall in the reserve accounts

meaning additional money is needed

the most common way to resolve the matter is to divide the cost among the owners

let's suppose that there was a $500,000 shortfall for a major repair

and there are 100 condo units in the building

then each unit is assessed a $5,000 special assessment fee 

in some cases, the condo association may select to borrow the money needed

this usually happens when an assessment would be more costly

than most unit owners would want to pay all in 1 shot

SBA loans are popular in these situations

where the payment can be spread out over a number years

$15,000 assessment could be paid for about $125 per month over 7 years

while unpopular, special assessments are a very effective solution

tune in to todays show for all the details