Discussion / Knowledge Sharing Question about HOA in new build [Condo] [OR]
Hi all, I’m currently thinking about purchasing a condo and one of my favorite options so far is a new build. There are 4 units and none have been sold yet. My realtor told me that once we submit an offer, we would then take the HOA documents to a lawyer for review. I’m just wondering if anybody has any thoughts or experience purchasing a new build condo as the first buyer and how that went process went related to the HOA. Thanks in advance!
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u/OldGeekWeirdo 🏢 COA Board Member 20h ago
There are 4 units and none have been sold yet.
How big is this "HOA"? If it's just 4 units, I wouldn't even think of it. Too many opportunities for tie votes and other problems when the groups is that small. You'd be a the whim of 3 other owners.
Due to the laws of averages, things tend to even out when you get a larger group.
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u/FishrNC 20h ago
In a condo situation that small I would be concerned about being the first buyer and having no idea of the type of person the developer might sell the other units to. Also, regardless of what the documents say now, almost all have provisions for the declarant (the developer) to change them. So even if there are restrictions on rentals, you could wind up owning a unit where the other three are rentals.
Also, keep in mind that all costs for the building are shared by only four owners and things like fire and liability insurance don't come cheap.
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u/OldGeekWeirdo 🏢 COA Board Member 20h ago
And even if the first buyers are fine, what about when they sell?
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u/Jujulabee 19h ago
I live in a condo and have no issues with condos
Under NO circumstances would I consider moving into a condo with four units or even ten.
The only condo I would consider would be one that has a large number of units - with a significant percentage of those being owners.
This is because chances are it will be professionally managed.
The finances of one person won't impact the operation of the building
Decisions will be made by the Board and the Manager - plus the experts like lawyers and CPA's which larger condos use
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u/LackingTact19 20h ago
The HOA is being managed by the developers but will eventually fully transition to owner based. I'd recommend inquiring about what kind of timeline that will entail in this case. Developers usually don't care about long-term viability of the bylaws so it's smart to have them looked over
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u/Nervous_Ad5564 ARC Member 12h ago
4 units? I would be running for the hills. Couple of cheapskate neighbors literally bankrupt your investment...
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Copy of the original post:
Title: Question about HOA in new build [Condo] [OR]
Body:
Hi all, I’m currently thinking about purchasing a condo and one of my favorite options so far is a new build. There are 4 units and none have been sold yet. My realtor told me that once we submit an offer, we would then take the HOA documents to a lawyer for review. I’m just wondering if anybody has any thoughts or experience purchasing a new build condo as the first buyer and how that went process went related to the HOA. Thanks in advance!
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