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.
Each condominium, cooperative or planned community is exposed to liabilities that have the potential to cripple the association. Therefore, commercial insurance is one of the most important components of a community association’s risk-management program.
One reason associations exist is to protect assets, which can be tangible (like equipment) or intangible (like...
No one likes a board meeting that runs on forever with no end in sight. This article offers ten tips for controlling board meetings to make sure that you both get the job done, and also do so in an efficient manner.
1. Time is a gift given by volunteer Board members. Cut down...
In December, Federal Housing Administration approval of condominiums began to expire. FHA approved mortgages account for an estimated 40 percent of financing in condominiums. Without FHA approval, owners may have a hard time selling their units. HUD is administering the new approval process and insurance requirements, which are set forth by Mortgagee Letter 2009-46 B.