Before purchasing one of the Calder Park Condominiums, you should do some research so that you understand exactly what you are buying before signing on the dotted line. The laws of condo ownership are not exactly the same as they are for buying a typical single family home.

If you are purchasing a home then consider yourself likely to be among the 25% of individuals who purchase a property with a home owners association (HOA). Normally, all properties have issues, but HOAs have their own exclusive collection of additional operational, financial and legal issues that all buyers must analyze, review and consider in concurrence with their interest in buying one of the new park models.

Many people are reluctant to purchase an HOA because of horror stories that are linked to them, which of course can easily be understood (and prevented). This is one personal choice for any buyer to think about.

Below are some of the HOA horror stories. Some of the stories might never have happened if the buyer had reviewed properly the HOA documents, reserve studies, financial statements, CC&Rs (covenants, conditions and restrictions) and demand statements.

The mentioned concerns offer an insight into some of the issues. Gay Realtor reminds us that it is your sole responsibility as a buyer to consider all factors to avoid making a purchase that will end up being a disaster to your financial future.

Ka-ching: $7,500 surprise three days after closing.

If you never heard, there is a true story about a couple that didn’t consider reading the condominium board meeting notes and minutes related to an $850,000 construction flaw that was supposed to be repaired, and the estimate cost for repairing each unit was $7,500 upon assessment. Well, this was noted down several months before the couple made the purchase but they never considered reading the pile of documents that were in relevance to their purchase that originated from the escrow. The couple was not aware about the assessment until three days after they closed on the unit.

NOTE: Always read the board of directors notes/meeting minutes to reveal potential assessments or emerging issues in relevance to the property.

Yikes! Purchasing rental property that can never be rented.

Sad as it may be, a big number of communities restrict the number of rental units in the property. This means that once the threshold value is reached (5 units as an example), there will be no other owner who can rent out their unit, and the only option they have is to let it remain vacant, or use it as their own personal residence.

NOTE: Make sure that you read the CC&Rs in order to fully grasp the restrictions such as the one mentioned above.

Astonished: The HOA fees are way beyond the mortgage fee.

The story here is about a buyer whose HOA fee gradually began exceeding his mortgage payments. For him, he lived on a restricted income. As years pass by, older buildings have items that need replacement, including expensive items like the boiler, the elevator and roof. Because of this, HOA fees can rise at alarming rates if the HOA Board has not budgeted in advance for these capitol replacements.

NOTE: Make sure you go through the Budget and Reserves information provided to you prior to purchase.

Author Jeff Hammerberg is the Founding CEO of GayRealEstate.com ~ Free Instant Access to the Nation’s Top Gay, Lesbian and Gay Friendly Realtors Coast to Coast. FREE Buyers Representation ~ Free Relocation Kit to any City, USA ~ Free Sellers Market Analysis for home sellers.