Why would a condo assn own some of the units?

[montanagirl]

I checked out a condo for sale in a complex I really like that's been here awhile.

Today I went online to check ownership and noticed the assn owned several.

Why would that happen? All I can think of is default on condo fees. Is that a bad sign?

[ActiveIndexer]

Correct, however there is a chance they could have foreclosed on the banks and not a resident. It’s not a bad sign necessarily, it could mean you have an active HOA that works to protect your financial interests which is good.

Served on a condo HOA since 2014 and we did that for a few bank owned units because they were not paying dues. Smaller chance they are doing something creative and risky like purchasing units to sell only to owner occupants. There are limits on lending to borrowers for condos in a building with a certain % of renters to owner occupants.

Are you sure the ones owned by the HOA are residential units? Our association owned some commercial units on the first floor we rented out as office space for doctors, dentist, lawyers and a hair salon.

[Prokofiev]

Best to contact the BOD / President and ask this and other questions.

Make sure to read the Condo documents and rules/regs before buying.

[sailaway]

I have seen condos that have a guest unit that owners can reserve for guests, for a fee, of course.

[vasaver]

I have seen an Assn buy basement units of larger buildings that were prone to flooding.