Avoiding
Problems & Hitches When Selling a Condo
Co-op
or Condo?
Condominiums:
Owner
has a deed for unit, has a separate mortgage, pays property
tax on the unit plus a percentage of the common areas
and pays a monthly maintenance fee. A board of directors
governs the complex with the owner having one vote.
The
condominium owner has a fee simple absolute unrestricted
ownership and is individually responsible for property
taxes and maintenance fees. When selling condo, use
the sales price of condominiums with similar size, appeal,
age, neighborhood, incurring similar maintenance fees,
etc. to determine market value when.
Cooperatives:
Most co-ops are incorporated
and a board of directors governs the complex with the
owner of each individual unit having one vote.
The
owner has no deed, only stock and a proprietary lease
which has a term from 10-50 years renewable automatically
or at the discretion of the shareholders. He/she cannot
refinance his unit as a condo owner can. Mortgage, property
tax and maintenance fees are paid pro rata by the owner
according to the percentage of the overall size of the
unit. Property tax appeals involve the corporation and
the stockholders.
Areas
to prepare for when Selling a Condo or Co-op or High-rise:
-
Have a copy of the by-laws, proposed by-laws,
fees for maintenance of outside areas prepared.
Note if the buyer is allowed to make improvements
(found in the condo's Declaration of Condominium
document). Obtain a copy of the condo's current
budget and their financial statement so you have
the information on hand.
-
Show that the current fees are paid and up to date. Owners
can be evicted for nonpayment of fees and knowledgeable
buyers want to be sure that there are no liens.
-
Obtain a copy of the Certificate of Insurance showing
how much the condo board has purchased to cover
damages to the common areas.
-
Get a copy of the statement of the percentage of
occupancy of the condominium complex. This is a
good selling point when selling a codo if the occupancy
rate is high.
-
Obtain a copy that spells out the use of recreational
facilities as well as a drawing or photo of the
unit's interior and recreational facilities. Get
a list of improvements, if any, the developer agrees
to make. These are great selling points.
-
Get a statement that spells out the monthly or
yearly maintenance fees the buyer is expected to
pay.
-
Obtain a copy of the Certificate of Title for your
condo unit.
-
When selling condo, if you decide to use a real estate
agent, you may want to use our service to locate the best
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Click here
for Accelerated House Sales 80:20 page to get
more information.
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Selling
Your House:
Seller
Fix-Up Advice.
Tips
on Selling and Marketing.
Reasons
Houses Don't Sell.
How to Price Your Home to Sell.
Problems and Solutions For The Do-It-Yourself
Seller.
Sales Agents, Listing Agents.
Site
Index.
Buying
Your House:
Tips on Buying Real Estate.
Monthly Payment Calculator.
Home Price Affordability Guide.
Buy vs Rent.
Buying a Condo.
Avoiding Closing Problems.
Frequently Asked Questions.
Buyers Agents.
Mortgages:
Mortgage Information.
Mortgages Online.
Additional Real
Estate Info:
Should
I make improvements or not?
What is the percentage of pay back?
What types of improvements should I undertake? What types
should I avoid?
Interviewing Real Estate
Brokers.
Relocating? How to select the
best qualified top rated agent in the area of your choice.
Tax Benefits of
selling real estate.
Dictionary: Definitions
of terms used in Real Estate.
Real Estate Commissions:
How do buyers agents and sales agents
differ?
Environmental
Factors: Valuation of Contaminated Properties:What your home inspector may find. Reason for a property
tax appeal?
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