When buying a Boston condo for sale, always ask are there any special assessments.
When buying a Boston condo for sale, always ask are there any special assessments. Buying a Boston condominium can be a financial wise investment, but there are many things to consider before deciding which Boston Seaport condo or a Boston Beacon Hill townhouse is a smart choice. Finding the right condominium requires home buyers to do their due diligence. The following are some questions to ask in order to make a well-informed decision and avoid potential pitfalls when purchasing a comdominium in downtown Boston.
1. Are there any special assessments coming up?
Before buying a Boston condo for sale, it is important to check if there’re any approaching special assessment. A special assessment is a fee for capital improvements, such as new roofs, heating system etc…, each unit owner has to pay in addition to the monthly condominium fee. As long as they don’t occur every year, special assessments can help keep the regular monthly maintenance fee low. Look at cash reserves over the last three years, if the budgets are available, and check if they show a decreasing trend. This means the reserve fund is not adequate and a special assessment may be necessary to keep the condo association in the black.
2. Ask for the last condo meeting notes
Don’t just take the Boston condo for sale brokers word about special assessments. Ask for the last 3 months of the condo meeting notes. This will provide you accurate information on whether there’s an assessment or if one could be coming up in the nest few months line or next year.
3. Are there any lawsuits against the condo conbmplex?
You should make sure there are no pending lawsuits: This is another reason why assessments may be required. Attorneys’ fees are taken out of the condominium’s budget, which could result in a special assessment. Pending legal disputes between owners, developers, guests and/or with the condo association can also be a sign of a poorly run condominium. Most lenders will require a condominium association to fill out a condo questionnaire before making a loan to a potential home buyer. These questionnaires often ask about pending lawsuits involving the condominium association. Most lawsuits likely will be covered by the master insurance policy (see below). Many times lawyers representing the association will draft a letter regarding the legal action that the HOA can present to potential new unit owners and their lenders.
4. What’s the delinquency rate?
A building’s delinquency rate is the percentage of residents who are late paying their condominium association’s dues. Many lenders will not approve mortgages for buildings with high delinquency rates. Under RSA 356-B:46 (which went into effect 01/01/2011), the condominium association has an automatic lien against unpaid condo fees and/or assessments. Once filed at the registry of deeds, that lien takes priority over any other type of lien with the exception of (1) real estate taxes, (2) liens/encumbrances recorded prior to the filing by the condominium association, (3) recorded first mortgages and (4) mechanics/materialmen’s liens. Notwithstanding the previous sentence, New Hampshire provides some protection for condominium associations when a condominium unit is foreclosed. A properly filed lien against unpaid condominium fees and/or assessments will take priority over a first mortgage held by an institutional lender, but only for mortgages executed on or after January 1, 2011, and only for the six months preceding the filing of the lien. The burden falls on the condominium association to give notice to the institutional lender and to record a memorandum of lien at the registry of deeds. If a mortgage was recorded prior to January 1, 2011, a foreclosing lender would be responsible for only those condo fees and assessments after the date the condominium was foreclosed. An experienced real estate attorney should be consulted regarding the condominium association’s rights and obligations.
Byline – John Ford – Boston Seaport Condo Broker.
Boston Seaport Condos for Sale 500k and above
Boston Seaport Condos for Sale 500k and above for Boston Seaport Condos for Sale in 2024.
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Where is Ford Realty Located?
Ford Realty is located in 137 Charles Street in Beacon Hill
Updated: Boston Condos for Sale Blog 2024