My first property was a condo. As a first-time homebuyer in the 805, it was what was within reach. It offered us more space than our rental and a quick walk to the beach, and we scrapped financially to make it happen.
Most folks in real estate know that “condos are a thing.” Under an ever-changing landscape of insurance options, state laws and local ordinances, management woes and neighborly complaints, historically recorded documents and real-life functionality lives the homeowners’ association (HOA) of a condominium complex. Yet, if you aren’t in this orbit, you might find current issues surprising if you are looking to buy, sell, or refinance a condominium locally.
As an entity with a fiduciary responsibility to uphold the laws and condition of the condominium complex, the homeowners’ association relies on volunteer decision makers (the board), and typically third-party management companies, to help them navigate all of the above and then some. Folks are expected to honor and respect the laws, regulations, and covenants, conditions, and restrictions (CC&Rs) set forth when a plot of land was transformed into a condominium complex, as well as those that continue to evolve. By its very nature, an HOA creates a communal living situation with individual tendencies. Association members are expected to live their lives in harmony with the established past, progressive present, and anticipated future. Sounds simple, right? Yet, so many HOAs have drastically deferred maintenance, were financially mismanaged, and some can barely get enough folks on the board to take action even if they wanted to do the right thing.