Why would a condo assn own some of the units?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
montanagirl
Posts: 1489
Joined: Thu Nov 19, 2009 4:55 pm
Location: Montana

Why would a condo assn own some of the units?

Post by 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
Posts: 9
Joined: Thu Feb 18, 2021 9:33 am
Location: Pennsylvania

Re: Why would a condo assn own some of the units?

Post by 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.
User avatar
Prokofiev
Posts: 1097
Joined: Mon Feb 19, 2007 9:45 pm
Location: New Orleans

Re: Why would a condo assn own some of the units?

Post by 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.
Everything should be made as simple as possible, but not simpler - Einstein
sailaway
Posts: 2991
Joined: Fri May 12, 2017 1:11 pm

Re: Why would a condo assn own some of the units?

Post by sailaway »

I have seen condos that have a guest unit that owners can reserve for guests, for a fee, of course.
vasaver
Posts: 225
Joined: Fri Oct 19, 2012 2:15 pm
Location: Virginia

Re: Why would a condo assn own some of the units?

Post by vasaver »

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