Whether you’ve purchased a condominium in the past or your first time home buyer there are some things about condominiums that many people believe that simply are not true. Here are five myths that you might believe about condo buying.
This is simply not the case. Condo living has certain obligations and restrictions that must be maintained. Co-owners are responsible for common areas in the complex and will need to pay a fee to maintain those. There is also regulations, bylaws and rules that must be followed and usually the exterior part of the condominium cannot be altered in any way.
#2. Financing for condominium is the same as a regular house.
This too is quite different. A condominium buyers should make sure that their mortgage file with the bank is ready to go and have proof of homeowners insurance. You’ll need to bring a bank draft for the pre-determined amount and many notaries won’t be able to sign the deed of the sale and less certain obligations are met. Be sure to check with your lender and your real estate agent on any requirements needed for financing a condominium.
#3. My mortgage payment is all I’ll have to make.
When you own a condominium not only do you make a mortgage payment consisting of principal and interest but you’ll also need to pay for homeowners insurance, property tax and condominium Association fees. These extra fees are paid directly to the Association and can be anywhere from a couple hundred dollars a year to several thousand dollars. Your mortgage fee, taxes and insurance can be built into your monthly mortgage payment but the association fees need to be paid directly to the complex.
#4. I own the entire unit.
In a condominium ownership homeowners only own what is inside the property. The roof, siding, common areas, stairs or other accessible areas belong to the Association as a whole and cannot be altered. This means you cannot paint the outside of the house or change windows or doors without approval. Also, some condominiums have certain walls that cannot be removed even on the inside of the unit.
#5. If I don’t like the rules I can change them.
The condominium Association has what’s called CC&Rs. This stands for covenants, conditions and restrictions. This is a set of bylaws that all unit owners must follow. However, most complex associations do have monthly, quarterly or annual meetings where you can discuss changing these rules. However, if one of the changes is not accepted it does not mean that you have the right to ignore the rules set in place.
If you’re interested in learning more about condominiums in Panama City Beach and surrounding areas feel free to give us a call at any time.
5 Myths First Time Condo Buyers Believe