Termite Inspection and the Sale of Your Condominium or Townhouse

8/24/14 - When selling your condominium or townhouse a termite inspection may be required. Often times necessary repairs which may appear on a termite report may in fact be the responsibility of the homeowners association, the cost of which you already contribute towards in the payment of your homeowners association dues.

In a condominium or townhome complex there are common areas and often shared walls with other homeowners. Specific to termite repairs, your dues pay towards necessary repairs to common areas and areas which are external to the home (outside walls), while your dues more often than not does not cover termite damage inside your unit. It is important to know that repairs disclosed on a termite report are not limited to termite infestation. You may find yourself needing to make repairs caused by water damage (dry rot), even if this may have been caused by a neighbor.

TIP. Contact your Homeowners Association or Management Company and ask for the name of the termite company the complex has used most recently. Ordering your termite report from this company will help to keep your costs down as they will charge the Homeowners Association for any necessary repairs external to your unit and limit your report to the inside walls of your unit only.

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Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on Facebook, Twitter, LinkedIn, and Google+.

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The Importance of Reviewing Financials of a Homeowners Association

8/11/14 - In the sale of a condominium or townhouse it is especially important to obtain the most updated version of the documentation from the Homeowners Association (HOA).

While the cost to obtain these documents may appear to be high, it is important that the Buyer receive these documents for their review and approval. This ultimately protects all parties from any possible future concerns or issues which may arise after the close of escrow.

The HOA package will include the CC&R’s (Covenants, Conditions and Restrictions) filed against the property, the Articles of Incorporation of the complex, its Bylaws, Rules and Regulations, Budget, Minutes of Board Meetings and the Financials.

In today’s economic environment it is especially important to carefully review the Financials of the Homeowners Association, which will indicate the financial strength of the Homeowners Association and its ability to maintain and pay its overhead. The HOA’s ability to pay insurance policy premiums, utilities for common areas, etc. plays a key role in determining whether this complex is right for you (and whether your new Lender will also find this complex a good investment to make a loan on.)

TIP. When reviewing the financials of a Homeowners Association it is imperative to determine whether there are any units which are delinquent in paying their HOA Dues (or units in foreclosure). Paying close attention to how many months any particular unit is behind in their payments (and especially the total amount of units in arrears as well as the cumulative amount of the combined unpaid HOA Dues) is of significant importance when considering a purchase in any particular complex. Unpaid dues can place an unwelcome financial burden on the rest of the homeowners.

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Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on Facebook, Twitter, LinkedIn, and Google+.

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