Why Do I Have To Pay For A Resale Package?
We have many homeowners who think that because they pay assessments every month they should not have to pay for a resale package. They are of the opinion that it is a bunch of pages all put together that just sits and waits for us to “push the button” when they place their order.
I would like to clarify why it is essential that management companies prepare these documents individually for each owner. First, it is a legal document required by law in many states as it protects the buyer from purchasing into a community association without first obtaining “full disclosure”. It contains a disclosure statement that includes the legal or pending legal status of litigation involving the association. It contains up-to-the-minute information about the assessments owed, outstanding special assessments and even pending assessments as required in many states. It provides the association’s financial status and any outstanding loans owed by the association. It also provides any covenants restrictions or violations on the unit. All of these questions are answered and are entered in real time by a staff member when the order is placed. The document is not static; it requires keen oversight as the questions are researched and completed.
Get down to brass tacks (not to mention green dollars) with a comprehensive maintenance and repair plan.
A 264-unit high-rise condominium community in Alexandria, Virginia, recently imposed a special assessment of almost $9,500 per unit to fund a $4-million exterior repair project. The project concentrated on repairing spalled concrete on balconies and refinishing stained and discolored window units.
Why was such a basic project performed on such a grand scale, with such a huge price tag? Lack of regular maintenance. The community had failed to maintain cementitious coatings on the balcony decks and ledges, to replace deteriorated non-shrink grout around balcony railings, or to periodically clean windows, resulting in sand from the brick veneer reacting with and staining window glazing.
In this week’s tip, we explain how helping owners with routine maintenance can reduce your HOA’s expenses, liability, and disputes among owners.
It is just beginning to be that reserve study time of year. Why? It takes a little while to select a reserve professional and get the reserve study scheduled. And, you need to have the reserve study completed before you can complete your budget for next year.
Although state statutes generally permit anyone to perform the reserve study, asso-ciations should consider engaging a qualified, independent reserve professional. There are two professional designations available; the PRA (Professional Reserve Analyst) conferred by APRA, the Association of Professional Reserve Analysts, and the RS (Reserve Specialist) designation conferred by CAI (Community Associ-ations Institute). Both of these designations require the reserve professional to have completed at least 50 reserve studies and have at least one year of reserve study experience.