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What are the factors you should consider before buying a condominium property for sale in QC? Upon your initial assessment, a condo may be conveniently near your work or school. The building has an impressive design and modern facilities. The price of the unit fits your budget, not to mention the spaciousness of the place and its layout seems made out for you. Everything’s perfect except for one thing – have you met the Homeowners’ Association (HOA) board?
Quezon City Condominnium
A condominium is similar to a community only it is situated inside a building. And just like any community, it needs someone to oversee the condition of the building and the welfare of its homeowners. This is the prime responsibility of the HOA appointed by the homeowners or tenants themselves.
The HOA board could be the lords and the voices of the unit owners. It should be the latter because you don’t want a HOA who is always hovering over your shoulder. They have the right to enforce rules and changes but it must be within reason and for the betterment of the entire condo community. How can you end up being in a good one? Do your homework and ask them these questions:
As a member of this “vertical” community, you’re automatically share the responsibility of the upkeep or maintenance of the building plus its common areas such as the gym, garden and pool. This monthly fee includes the operating costs (day-to-day expenses), reserve fee (long-term maintenance expenses) and special assessment fee (a one-time and unexpected expense). It is important to know this so you can have an accurate estimation of your overall expenses and if you can handle it.
How do they deal with late payments? The inability to pay fees on time could lead to foreclosure and not just the money you owed them.
Also expect the fees to increase on a monthly or, more likely, yearly basis. How do they compute this and how frequent?
Your unit, your rules. We don’t want to burst your bubble but sadly this will never happen once a HOA is in-charge. Better ask a copy of their by-laws and read it carefully. They might impose rules which are against your lifestyle. Unfortunately, these rules are set to stone, meaning you cannot easily bend them at your will or change them in favor of your current situation. It is either you follow them, be fined, or find a different condo. A common example of this is they could set restrictions on having pets or plants.
Reserve fund is the emergency fund of the condo for immediate repairs. One way to find out if the HOA is well-funded is if they conduct a reserve study to assess if the reserve fund is adequate or not. Other red flags to look out for are the frequency of emergency loan applications and special assessments, and number of foreclosed and bank-owned units inside the building. It only means the condo is poorly managed or it is full of delinquent unit owners.
In some point in time, you may want to rent or sell your unit for extra cash. Some HOA are lenient, while others are not mainly because of security reasons. Inquire also about the number of units they allow to be rented. Is there a rental agreement required during the renting process wherein the renter acknowledges and follows the rules and regulations of the association?
Accidents do happen, and it is best to be saved by the HOA’s insurance than being slapped by large special assessment fees. Does it cover your unit as well or only the common areas?
The HOA may not disclose all of these so better ask someone outside the HOA board, too. Are there any serious complaints among the unit owners or against the association or developer? How long is the response time of the HOA when it comes to tenants’ grievances and repairs inside the building? Another way to get HOA to cough up information is to hire a reliable real estate agent or lawyer that will help you through the entire ordeal.
Getting to know your future HOA may help you decide if the condominium property for sale in QC is worth your every penny.
The HOA board could be the lords and the voices of the unit owners. It should be the latter because you don’t want a HOA who is always hovering over your shoulder. They have the right to enforce rules and changes but it must be within reason and for the betterment of the entire condo community. How can you end up being in a good one? Do your homework and ask them these questions:
What are included in the HOA fees?
As a member of this “vertical” community, you’re automatically share the responsibility of the upkeep or maintenance of the building plus its common areas such as the gym, garden and pool. This monthly fee includes the operating costs (day-to-day expenses), reserve fee (long-term maintenance expenses) and special assessment fee (a one-time and unexpected expense). It is important to know this so you can have an accurate estimation of your overall expenses and if you can handle it.
How do they deal with late payments? The inability to pay fees on time could lead to foreclosure and not just the money you owed them.
Also expect the fees to increase on a monthly or, more likely, yearly basis. How do they compute this and how frequent?
What are the HOA rules?
Your unit, your rules. We don’t want to burst your bubble but sadly this will never happen once a HOA is in-charge. Better ask a copy of their by-laws and read it carefully. They might impose rules which are against your lifestyle. Unfortunately, these rules are set to stone, meaning you cannot easily bend them at your will or change them in favor of your current situation. It is either you follow them, be fined, or find a different condo. A common example of this is they could set restrictions on having pets or plants.
Is there an existing reserve fund?
Reserve fund is the emergency fund of the condo for immediate repairs. One way to find out if the HOA is well-funded is if they conduct a reserve study to assess if the reserve fund is adequate or not. Other red flags to look out for are the frequency of emergency loan applications and special assessments, and number of foreclosed and bank-owned units inside the building. It only means the condo is poorly managed or it is full of delinquent unit owners.
Is renting allowed?
In some point in time, you may want to rent or sell your unit for extra cash. Some HOA are lenient, while others are not mainly because of security reasons. Inquire also about the number of units they allow to be rented. Is there a rental agreement required during the renting process wherein the renter acknowledges and follows the rules and regulations of the association?
Is there an existing HOA insurance?
Accidents do happen, and it is best to be saved by the HOA’s insurance than being slapped by large special assessment fees. Does it cover your unit as well or only the common areas?
The HOA may not disclose all of these so better ask someone outside the HOA board, too. Are there any serious complaints among the unit owners or against the association or developer? How long is the response time of the HOA when it comes to tenants’ grievances and repairs inside the building? Another way to get HOA to cough up information is to hire a reliable real estate agent or lawyer that will help you through the entire ordeal.
Getting to know your future HOA may help you decide if the condominium property for sale in QC is worth your every penny.