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	<title>Comments on: Condo Conversion vs. New Construction</title>
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	<link>http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/</link>
	<description>Seattle&#039;s Leading Resource for Real Estate Information</description>
	<lastBuildDate>Sat, 21 Nov 2009 06:01:18 -0800</lastBuildDate>
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		<title>By: ARDELL</title>
		<link>http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-339876</link>
		<dc:creator>ARDELL</dc:creator>
		<pubDate>Thu, 21 May 2009 00:46:59 +0000</pubDate>
		<guid isPermaLink="false">http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-339876</guid>
		<description>Hannah,

As I said earlier, the only time I had this problem the roofer, who made a skazillion bucks putting the roof on :) was more than happy to come out and fix the problem as part of the roof warranty.

It depends on what the fix is.  How do you know it is $2,500?  What would the fix be for $2,500? I&#039;m 99% sure whoever built it can get it fixed for less than that. Birds are hard to keep away though.

I&#039;m glad you feel better. I&#039;m pretty sure the laws for condos under X units are different than for those over X units...and I&#039;m not sure what X is here.  I just sold a townhome in an 8-plex, but they are all single family homes and not condos, as most Seattle townhomes are.  

I once sold a condo in a 4-plex near Licton Springs park, but made it clear to the buyer that it was like four people jointly owning a single family home, and there was no great HOA fairy with a magic wand.</description>
		<content:encoded><![CDATA[<p>Hannah,</p>
<p>As I said earlier, the only time I had this problem the roofer, who made a skazillion bucks putting the roof on <img src='http://raincityguide.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' />  was more than happy to come out and fix the problem as part of the roof warranty.</p>
<p>It depends on what the fix is.  How do you know it is $2,500?  What would the fix be for $2,500? I&#8217;m 99% sure whoever built it can get it fixed for less than that. Birds are hard to keep away though.</p>
<p>I&#8217;m glad you feel better. I&#8217;m pretty sure the laws for condos under X units are different than for those over X units&#8230;and I&#8217;m not sure what X is here.  I just sold a townhome in an 8-plex, but they are all single family homes and not condos, as most Seattle townhomes are.  </p>
<p>I once sold a condo in a 4-plex near Licton Springs park, but made it clear to the buyer that it was like four people jointly owning a single family home, and there was no great HOA fairy with a magic wand.</p>
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		<title>By: Hannah</title>
		<link>http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-339875</link>
		<dc:creator>Hannah</dc:creator>
		<pubDate>Thu, 21 May 2009 00:17:12 +0000</pubDate>
		<guid isPermaLink="false">http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-339875</guid>
		<description>Thanks so much. I feel a little less cornered. I have the contact for the developer of the condos. There hasn&#039;t been any election of board members, so there is no real HOA. It&#039;s me (as an owner of 1/6) and the developer. Should I put in writing a claim to have the &quot;roof/attic&quot; taken care of (paperwork says I own up to my ceiling). Does he have to cooperate with me? I&#039;m okay with paying my share, I just want the issue resolved. *sigh*</description>
		<content:encoded><![CDATA[<p>Thanks so much. I feel a little less cornered. I have the contact for the developer of the condos. There hasn&#8217;t been any election of board members, so there is no real HOA. It&#8217;s me (as an owner of 1/6) and the developer. Should I put in writing a claim to have the &#8220;roof/attic&#8221; taken care of (paperwork says I own up to my ceiling). Does he have to cooperate with me? I&#8217;m okay with paying my share, I just want the issue resolved. *sigh*</p>
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		<title>By: ARDELL</title>
		<link>http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-339865</link>
		<dc:creator>ARDELL</dc:creator>
		<pubDate>Wed, 20 May 2009 22:19:57 +0000</pubDate>
		<guid isPermaLink="false">http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-339865</guid>
		<description>Hannah,

The listing agent has nothing to do with your ownerhisp issue, though I would expect he/she would give you the contact info you need for the HOA.  If you had a buyer&#039;s agent when you purchased, that agent might be able to help you get the contact info you need.  But neither agent is involved in owners and the HOA after you purchase.

When you purchased you received documents, a big stack of them if it is a condo vs. a PUD. The info you need should be in there.  The escrow who closed your transaction may be able to help you get the HOA contact info as well.

Remember, bird problems are not covered.  Roof problems are.  That&#039;s a huge distinction.  Who owns your roof?  That is who is obligated to pay for a &quot;roof repair&quot;. Calling it a bird problem vs. a roof or eaves problem, will stall action.  No one is in charge of birds except God :)</description>
		<content:encoded><![CDATA[<p>Hannah,</p>
<p>The listing agent has nothing to do with your ownerhisp issue, though I would expect he/she would give you the contact info you need for the HOA.  If you had a buyer&#8217;s agent when you purchased, that agent might be able to help you get the contact info you need.  But neither agent is involved in owners and the HOA after you purchase.</p>
<p>When you purchased you received documents, a big stack of them if it is a condo vs. a PUD. The info you need should be in there.  The escrow who closed your transaction may be able to help you get the HOA contact info as well.</p>
<p>Remember, bird problems are not covered.  Roof problems are.  That&#8217;s a huge distinction.  Who owns your roof?  That is who is obligated to pay for a &#8220;roof repair&#8221;. Calling it a bird problem vs. a roof or eaves problem, will stall action.  No one is in charge of birds except God <img src='http://raincityguide.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /> </p>
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		<title>By: Hannah</title>
		<link>http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-339845</link>
		<dc:creator>Hannah</dc:creator>
		<pubDate>Wed, 20 May 2009 14:20:46 +0000</pubDate>
		<guid isPermaLink="false">http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-339845</guid>
		<description>Thank you for the response to my question. It gave a little insight as to what would be legitamate for me to pay. I&#039;m happy with 1/6th. I will talk to a lawyer. Should I get a hold of the developer, since he &quot;is&quot; the HOA right now.... rather than talking with the listing agent, who isn&#039;t very tactful?</description>
		<content:encoded><![CDATA[<p>Thank you for the response to my question. It gave a little insight as to what would be legitamate for me to pay. I&#8217;m happy with 1/6th. I will talk to a lawyer. Should I get a hold of the developer, since he &#8220;is&#8221; the HOA right now&#8230;. rather than talking with the listing agent, who isn&#8217;t very tactful?</p>
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		<title>By: ARDELL</title>
		<link>http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-339842</link>
		<dc:creator>ARDELL</dc:creator>
		<pubDate>Wed, 20 May 2009 06:39:37 +0000</pubDate>
		<guid isPermaLink="false">http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-339842</guid>
		<description>Hannah,

Not sure of the condo master insurance policy would come into play.  You may want to check on that insurance and make sure you have a good supplemental policy of your own with a lower deductible than that of the complex policy.</description>
		<content:encoded><![CDATA[<p>Hannah,</p>
<p>Not sure of the condo master insurance policy would come into play.  You may want to check on that insurance and make sure you have a good supplemental policy of your own with a lower deductible than that of the complex policy.</p>
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		<title>By: ARDELL</title>
		<link>http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-339841</link>
		<dc:creator>ARDELL</dc:creator>
		<pubDate>Wed, 20 May 2009 06:37:00 +0000</pubDate>
		<guid isPermaLink="false">http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-339841</guid>
		<description>Hannah,

You likely have to contact an attorney on that one.  With only 6 units, your perception that the HOA covers things is not likely accurate.  In my experience, 6 owners cannot feed enough money into the HOA to cover much, and problems are handled via special assessment. 

Given 4 are still vacant, there may be legal obligations of the developer while he still IS the association, before he turns it over to the owners. So asking an attorney who specializes in condominium laws is what I would recommend. The agent is not the person to ask and generally has nothing to do with the HOA issues. See if you can find out who the attorney was who prepared the condo documents for the developer.  Their name should be somewhere in your records or available in the County records.

Even large complexes generally do not budget for bird issues.  When I managed large complexes in the past...it was not a reserve or budget item. I do recall one bird issue that was determined to be caused by the roof installation, and the roofer came and did the repair. One of the owners wanted the bird poop cleaned out of her attic, but that was not covered.

In most cases if a buyer purchases in a very small complex, they should not be led to believe that the HOA is someone other then themselves and their few neighbors. Since you have never paid any dues, I would think at minimum you would be responsible for 1/6th of the cost to fix the problem. Unless, the reason the birds found a way to get in, was a construction defect.

All documents are different, so I don&#039;t know when your dues were supposed to begin. But it is standard that small complexes run somewhat like a condo and somewhat like a single family home, given the small number of people paying in to the HOA.</description>
		<content:encoded><![CDATA[<p>Hannah,</p>
<p>You likely have to contact an attorney on that one.  With only 6 units, your perception that the HOA covers things is not likely accurate.  In my experience, 6 owners cannot feed enough money into the HOA to cover much, and problems are handled via special assessment. </p>
<p>Given 4 are still vacant, there may be legal obligations of the developer while he still IS the association, before he turns it over to the owners. So asking an attorney who specializes in condominium laws is what I would recommend. The agent is not the person to ask and generally has nothing to do with the HOA issues. See if you can find out who the attorney was who prepared the condo documents for the developer.  Their name should be somewhere in your records or available in the County records.</p>
<p>Even large complexes generally do not budget for bird issues.  When I managed large complexes in the past&#8230;it was not a reserve or budget item. I do recall one bird issue that was determined to be caused by the roof installation, and the roofer came and did the repair. One of the owners wanted the bird poop cleaned out of her attic, but that was not covered.</p>
<p>In most cases if a buyer purchases in a very small complex, they should not be led to believe that the HOA is someone other then themselves and their few neighbors. Since you have never paid any dues, I would think at minimum you would be responsible for 1/6th of the cost to fix the problem. Unless, the reason the birds found a way to get in, was a construction defect.</p>
<p>All documents are different, so I don&#8217;t know when your dues were supposed to begin. But it is standard that small complexes run somewhat like a condo and somewhat like a single family home, given the small number of people paying in to the HOA.</p>
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		<title>By: Hannah</title>
		<link>http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-339839</link>
		<dc:creator>Hannah</dc:creator>
		<pubDate>Tue, 19 May 2009 23:04:10 +0000</pubDate>
		<guid isPermaLink="false">http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-339839</guid>
		<description>Hello. I was the first to purchase a condo in a six unit complex a year ago. One other has sold. So the developer owns 4 out of the 6. We haven&#039;t been charged any HOA dues, but the lawn has been mowed once in the last 4 months and there is bird infestation in the attic space and dryer/other vents.  When I brought this up, the listing agent (my only contact) said the developer was nice enough the pay the HOA dues for the past year for me while I was the only one in the building..... is that true or was he legally bound to pay them until a percentage was sold? She said there isn&#039;t a reserve with $2500 to fix the bird problem, so she said I should wait until the birds fly the coop.(!!!??). If there&#039;s no HOA, how do I get this fixed- out of my pocket for the welfare of my unit and the building as a whole?????</description>
		<content:encoded><![CDATA[<p>Hello. I was the first to purchase a condo in a six unit complex a year ago. One other has sold. So the developer owns 4 out of the 6. We haven&#8217;t been charged any HOA dues, but the lawn has been mowed once in the last 4 months and there is bird infestation in the attic space and dryer/other vents.  When I brought this up, the listing agent (my only contact) said the developer was nice enough the pay the HOA dues for the past year for me while I was the only one in the building&#8230;.. is that true or was he legally bound to pay them until a percentage was sold? She said there isn&#8217;t a reserve with $2500 to fix the bird problem, so she said I should wait until the birds fly the coop.(!!!??). If there&#8217;s no HOA, how do I get this fixed- out of my pocket for the welfare of my unit and the building as a whole?????</p>
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		<title>By: ARDELL</title>
		<link>http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-321254</link>
		<dc:creator>ARDELL</dc:creator>
		<pubDate>Fri, 11 Jul 2008 03:07:59 +0000</pubDate>
		<guid isPermaLink="false">http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-321254</guid>
		<description>leroy,

I know one HOA where the developer still owns and rents a portion of the units 40 years or more after they were built.  I don&#039;t think there is one standard for all associations.  The original documents are different from complex to complex.  

It doesn&#039;t seem fair for the homeowners to not have to pay dues just because the market got soft and the developer couldn&#039;t sell all of the units.  On the other hand, for the developer to stop trying to sell them could be a problem for owners who may want to sell while there are too many rental units in the building.

I suggest you have a meeting of all of the owners.  Usually there is someone who lives there who can read the documents or who has brought them to an attorney to answer the question you raise.  It wouldn&#039;t make sense for all 36 owners to separately get a legal opinion.  If no one has asked an attorney yet, it shouldn&#039;t cost much if all or most of the 36 owners chipped in to get an attorney to check if the developer is acting within his rights under the original document.

In the HOA I mentioned in the first paragraph, the developer clearly reserved the right to own and rent some of the units after the HOA was turned over.  He did have to pay condo dues on those units.  I doubt the developer can hold the 20 units and rent them without paying his share of the condo dues while he does that.  Though he may have a reduced rate or a limitation on the amount his does can be increased.  So check your documents carefully.</description>
		<content:encoded><![CDATA[<p>leroy,</p>
<p>I know one HOA where the developer still owns and rents a portion of the units 40 years or more after they were built.  I don&#8217;t think there is one standard for all associations.  The original documents are different from complex to complex.  </p>
<p>It doesn&#8217;t seem fair for the homeowners to not have to pay dues just because the market got soft and the developer couldn&#8217;t sell all of the units.  On the other hand, for the developer to stop trying to sell them could be a problem for owners who may want to sell while there are too many rental units in the building.</p>
<p>I suggest you have a meeting of all of the owners.  Usually there is someone who lives there who can read the documents or who has brought them to an attorney to answer the question you raise.  It wouldn&#8217;t make sense for all 36 owners to separately get a legal opinion.  If no one has asked an attorney yet, it shouldn&#8217;t cost much if all or most of the 36 owners chipped in to get an attorney to check if the developer is acting within his rights under the original document.</p>
<p>In the HOA I mentioned in the first paragraph, the developer clearly reserved the right to own and rent some of the units after the HOA was turned over.  He did have to pay condo dues on those units.  I doubt the developer can hold the 20 units and rent them without paying his share of the condo dues while he does that.  Though he may have a reduced rate or a limitation on the amount his does can be increased.  So check your documents carefully.</p>
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		<title>By: leroy</title>
		<link>http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-321245</link>
		<dc:creator>leroy</dc:creator>
		<pubDate>Thu, 10 Jul 2008 23:12:50 +0000</pubDate>
		<guid isPermaLink="false">http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-321245</guid>
		<description>At what point can a developer begin to collect home owner dues? My understanding was the developer was responsible up to the time the Association was turned over to the homeowners. The Home Owners Association would then collect dues as stated in the POS following the transition meeting and election of Board members. 
The developer of our conversion in South Lake Union decided that since they were struggling to sell their last 20 units (out of 56) they would rent the remainder and turn the association over to the homeowners with the developer commanding 20 votes. Also the developer had the management company begin collecting COA dues 2 months prior to the transition meeting and board election.</description>
		<content:encoded><![CDATA[<p>At what point can a developer begin to collect home owner dues? My understanding was the developer was responsible up to the time the Association was turned over to the homeowners. The Home Owners Association would then collect dues as stated in the POS following the transition meeting and election of Board members.<br />
The developer of our conversion in South Lake Union decided that since they were struggling to sell their last 20 units (out of 56) they would rent the remainder and turn the association over to the homeowners with the developer commanding 20 votes. Also the developer had the management company begin collecting COA dues 2 months prior to the transition meeting and board election.</p>
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		<title>By: ARDELL</title>
		<link>http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-308582</link>
		<dc:creator>ARDELL</dc:creator>
		<pubDate>Wed, 16 Apr 2008 15:46:23 +0000</pubDate>
		<guid isPermaLink="false">http://raincityguide.com/2006/02/10/condo-conversion-vs-new-construction/#comment-308582</guid>
		<description>Terri,

Since you have named the actual complex, I am very limited in what I can and can&#039;t say on a blog.  In most condo complexes, if not all, windows and hot water tanks are owner responsibilities from day 1 if they are new condos vs conversions.  However it is my feeling that there should be a law requiring that the hot water tanks be addressed, even if it is not paid for by them, but a mandatory extra charge for every condo.

What you want to look for is a Reserve Study.  That study should have a recommendations for the amount to be put in reserves before the complex is turned over to the HOA (owners).  You want to match that against what the developer has committed to putting in, though they may not do it until the end.  The Reserve Study rarely recommends 100% funding, but often makes 3 or more recommendations at different levels: &quot;x to be 60% funded, x to be 70% funded, x to be 80% funded&quot;.  The remaining amount being built into the dues before the life expectancy of any major component is over.

If you do proceed, make sure you have insurance coverage in case someone else&#039;s tank blows and water intrudes on your space.  Not the HOA insurance with a huge deductible, but your own supplemental policy for your things plus a smaller deductible to bridge the gap.  Also get a home warranty, the type only available whe you are buying and selling and renew it as long as they let you.  That will help with electrical and plumbing issues, heater if it goes, and a few other things.

The issue on resale will be what if there are 10 for sale when you try to sell and 4 have 3 spots, 6 have 2 spots and yours is the only one for sale with only 1 spot?  In my experience, regardless of what was paid for a spot at time of purchase, they end up at the same asking price and the units with the 2 and 3 spots keep selling and the one with 1 spot doesn&#039;t.

Say 10 people want to move and there are only 5 buyers.  By the time the 9 with more spots sell, there are more coming on market with more spots and the unit with 1 spot keeps getting &quot;left behind&quot;.  You need a ratio of total units, how many have 3 spots, how many have 2 spots and how many have 1 including all units and not just those available or just those sold to date.

I agree that having only 1 spot that is not close to the unit is a considerable issue, and will be even more considerable on resale.</description>
		<content:encoded><![CDATA[<p>Terri,</p>
<p>Since you have named the actual complex, I am very limited in what I can and can&#8217;t say on a blog.  In most condo complexes, if not all, windows and hot water tanks are owner responsibilities from day 1 if they are new condos vs conversions.  However it is my feeling that there should be a law requiring that the hot water tanks be addressed, even if it is not paid for by them, but a mandatory extra charge for every condo.</p>
<p>What you want to look for is a Reserve Study.  That study should have a recommendations for the amount to be put in reserves before the complex is turned over to the HOA (owners).  You want to match that against what the developer has committed to putting in, though they may not do it until the end.  The Reserve Study rarely recommends 100% funding, but often makes 3 or more recommendations at different levels: &#8220;x to be 60% funded, x to be 70% funded, x to be 80% funded&#8221;.  The remaining amount being built into the dues before the life expectancy of any major component is over.</p>
<p>If you do proceed, make sure you have insurance coverage in case someone else&#8217;s tank blows and water intrudes on your space.  Not the HOA insurance with a huge deductible, but your own supplemental policy for your things plus a smaller deductible to bridge the gap.  Also get a home warranty, the type only available whe you are buying and selling and renew it as long as they let you.  That will help with electrical and plumbing issues, heater if it goes, and a few other things.</p>
<p>The issue on resale will be what if there are 10 for sale when you try to sell and 4 have 3 spots, 6 have 2 spots and yours is the only one for sale with only 1 spot?  In my experience, regardless of what was paid for a spot at time of purchase, they end up at the same asking price and the units with the 2 and 3 spots keep selling and the one with 1 spot doesn&#8217;t.</p>
<p>Say 10 people want to move and there are only 5 buyers.  By the time the 9 with more spots sell, there are more coming on market with more spots and the unit with 1 spot keeps getting &#8220;left behind&#8221;.  You need a ratio of total units, how many have 3 spots, how many have 2 spots and how many have 1 including all units and not just those available or just those sold to date.</p>
<p>I agree that having only 1 spot that is not close to the unit is a considerable issue, and will be even more considerable on resale.</p>
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