What Twin Cities Condo & Townhome Buyers Should Know About Special Assessments
When you buy a condo or a townhome, you’ll have predictable mortgage payments (if you don’t own the property free & clear) and the homeowners association (HOA) dues. But there’s one (possible) expense that’s hard to predict.
The wild card? Special assessments.
For well-managed condo or townhome properties, the special assessment is, fortunately, can be a rare bird.
If you decide to run for a position on the board of your new condo, you’ll have a strong voice in the financial matters of the property, including the decision to impose extra fees.
Some condo owners don’t join boards. But every owner needs to know what leads a board to impose a special assessment on residents.
Special assessments are rare, but stuff happens.
Special assessments can be rather unpopular, and boards don’t like to impose them. Only an urgent need for major structural repairs, or unexpected new energy costs, should compel an assessment. Such assessments may be avoided if your HOA board funds its capital reserve properly.
Your board should have a system that periodically injects cash into the reserve fund.
Good financial stewardship is the key!
Properties can be flexible on how residents pay.
If you are hit up for a special assessment, you may not have to pay a lump sum. Ask if you have an option to pay over time.
Some boards may, on an individual basis, agree to allow a payment period of two, three, five, or ten years. Some offer discounts for an immediate payment.
Looking for a new condo in the Twin Cities? RE/MAX Results-Shannon Lindstrom, Realtor can help you locate a new place to call home. Please feel free to contact call or text Shannon today at 612-616-9714.