Condominium and Homeowners Association Sales

The Association documents will be requested from your association. You will need to pay the fee they require for these documents. Expect anywhere from $200-$500 for the fee.

The buyer has an opportunity to review these documents and accept them or terminate the contract.

Condominium

There are a number of differences between a “standard” residential property and one that is part of a condominium or planned community. Generally speaking, a condominium owner only owns the interior area of his or her “unit.” The owner also owns, with all other owners, the property surrounding the units, which is called the “common area.” Owners pay a monthly fee to cover maintenance and repairs to the common areas, which generally includes sidewalks, parking areas, landscaping, swimming pools and the exteriors of the buildings.

Planned Community (HOA)

A planned community is similar to a condominium except the owner usually owns the building and the land directly underneath it. Most of the rest of the planned community would be common areas owned by all of the owners and maintained by a homeowner association. Like the condominium, a monthly fee is generally assessed for upkeep of the common areas. The condominium or homeowner association usually has a board of directors made up of owners. The board makes rules and regulations governing the use of the common areas and is also responsible for overseeing the association's finances.

When a newly-constructed house is being purchased, the Uniform Condominium Act and the Pennsylvania uniform Planned Community Act require a seller (if also the declarant) to give a buyer a Public Offering Statement. These are slightly different requirements that are in place for the sale of an existing unit or house which, with some exceptions, obligate a seller to give a buyer a "certificate of resale” along with the rules and regulations of the association before the Agreement can become binding. The certificate of resale contains a list of items that the buyer is entitled to review before settlement occurs. Buyers are given five days to review these documents and to terminate the sale if not satisfied for any reason. When purchasing a new unit in a condominium or a new house in a planned community, the developer (seller) is required to give you additional information and more time to review the documents.

A Word to the Wise

Many buyers are quite surprised to find out what sorts of limitations a condominium or homeowner association can enforce. Limitations can often include rules on choosing exterior paint color, putting up decorations and ornaments, landscaping, and other issues. Certain activities may also be restricted, such as parking, ball playing, and bicycle riding. To avoid surprises, you as the seller should share any information about your association with me as part of our listing consultation. This way, I can prep buyers who may not know there is a restriction on the dog weight and shoulder height from ground or a limitation on what paint the door can be.