If you’re thinking about investing in a condominium there are many terms and policies, which may be very unfamiliar to you, one of the big ones is the condo association. A condo association, sometimes referred to as a homeowner?s association, is a legal entity that oversees development?s laws and regulations and usually also serves as a property manager of sorts.
The association has the responsibility of providing services, regulating activities, and charging fines. Much like a government body, they have the authority to enforce the rules for the condominium. The condo association is often arranged as a board of directors with most of the positions going to elected officials who live within the condominium.
Many condo residents aren’t too concerned with their associations as long as they play by the rules and the association keeps up their end of the bargain. The real issue for many residents is the condo fees. Condominiums come with a great degree of common area expenses and a monthly assessment fee is levied against all units to defray these costs and then, usually, to create a contingency fund. Before you dive into a condominium purchase you need to research what you will be asked to pay monthly and annually to the association. You should also ask to see a copy of the condo’s rules. This information must be provided to you prior to purchase but the sooner you familiarize yourself with the restrictions and regulations the more satisfied you?ll be with the outcome.