Re: Logistics of 2 Family Home in the Heights
Posted by sinbushar on 2018/4/12 11:00:16
I'm part of a 4-unit condo association, and we have a bank account and pay our own bills -- no outside management company needed. Somebody has to volunteer to write the checks and do the bookkeeping (basically a thankless job).
In our association, all of the units have a slightly different square footage and pay a different percentage of common expenses. I think this would probably be true of a 2-unit building as well -- and give one owner more weight in the case of disagreement.
I remember the developer of our building had set up the association before the units were sold, which I assume is a requirement if you are selling condo units.
How do you maintain funds in the checking, and make sure everyone is complying? Is it like an escrow where you keep it above a certain level?
I'm not a lawyer (or the original poster), but from my own reading a couple years ago:
-If you establish a Condo Association (CA), you establish what services the CA is to perform and you collect appropriate fees.
-There are different ways to calculate the funds you want to keep in reserve depending on what falls under the umbrella of responsibility for the CA. (if it is just normal maintenance or if the CA is also responsible for the roof or HVAC). If a CA is underfunded, your appraisal could be negatively affected.
-While not usually escrowed, if CA fees are not paid, a property could be put in foreclosure, but on a 2-unit property any kind of legal fight might wipe out all the funds and leave both owners on the hook to replenish the CA.
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