With Florida’s attractive beaches and beautiful weather year-round, millions choose to retire here. As such, there are numerous condominium communities in Miami-Dade and across the state. This could pose a good business opportunity if you own a condo that you wish to rent out. On the other hand, there are some aspects regarding condominium associations that may complicate matters if you want to sell.
Homeowners associations are a common factor in neighborhoods across the country, particularly in Florida. Many see these associations as a good way to regulate how residents keep up their properties and avoid lowering neighborhood property values. Others view homeowners associations as being unnecessarily strict and restrictive. According to Bankrate, numerous factors pertaining to a condo association may prevent potential buyers from being able to get a loan for the home.
This may be the case if the association management is experiencing certain difficulties, such as having low cash reserves, excessive delinquencies on dues or lawsuits against the association. It may also be a bad sign to lenders if there are too many renters in the community or the association has insufficient insurance.
You should understand that the Federal Housing Administration, Fannie Mae and Freddie Mac have set guidelines for the best interests of homeowners and buyers regarding difficulties with condo and homeowners associations. It may also be a good idea to research your HOA to see if it has any issues before you put your condo on the market, so you can be prepared and address the problems when possible. This information should not serve as legal advice, but is here to help you understand more about the issues that may arise when selling your condo.