Are there any rules for what should be included in HOA’s for a California Condo Conversion?
May 11, 2010 by
Filed under condo insurance quote
We are considering purchasing a recent condo conversion. There are only 6 units in the building – there is no pool, gym or common area and the grounds are limited. The HOA’s are quoted around $300 and covers water and fire insurance. That sounds a bit high and I assumed it would cover earthquake insurance, but it doesn’t. Does the buyer have any wiggle room? Perhaps asking that the whole condo get basic cable – that would help a bit. I know the seller doesn’t have any invested interest in having high HOA’s – so I’m assuming this is fair, but wondering how we could make this seem more reasonable. Any suggestions would be appreciated.
You need to get a copy of the budget. That will tell you what is covered in the $300 and how much is set aside for reserves. Go through the reserve study and make sure this figure is enough.
Once you are an owner, you will become one of the six owners that determine what you pay in assessments. You will have a huge say in what is spent. Until you own the unit, though, you will have no say in what is spent.
Remember, you probably have a landscaper and an electric bill for anything outside your unit. The insurance can be a huge expense, and when you only divide it by six, it’s a lot for each unit. With all the expenses, you only have six units to pay all the bills.
You can’t compare a six-unit complex with a large one – in a large one, you have a lot more people contributing to the expenses, so, of course, the cost for each person would be less.