Condo fees

[sheehs1]

When one buys a condo....is it wise to get an inspection (not an appraisal) or is it a waste of money. This development has been selling condos for about 2 years. The building my daughter is buying into was completed a month ago. I realize they could not be built or on the market if they had not passed all building codes...and that a lot of what we would like to know...is already behind walls.
Also...can she waived the Title Insurance Fee of $850.00 at closing? AFter all...with new condos...the title should not be a problem. Would you guys recommend she waive it?

 

[Westernskies]

When one buys a condo....is it wise to get an inspection (not an appraisal) or is it a waste of money. This development has been selling condos for about 2 years. The building my daughter is buying into was completed a month ago. I realize they could not be built or on the market if they had not passed all building codes...and that a lot of what we would like to know...is already behind walls.
Also...can she waived the Title Insurance Fee of $850.00 at closing? AFter all...with new condos...the title should not be a problem. Would you guys recommend she waive it?

Nord's last paragraph in post #24 explains why I wouldn't want to waive title insurance- if there are problems with liens,etc. that show up on the unit after closing, the Title Insurance Company will have to sort them out if they issued an insurance policy guaranteeing you a clear title to the property- they aren't going to do that unless they have researched public records, filings, etc. and satisfied themselves that the title is clear and that issuing the policy is a sound business decision. At $850, it's a false economy NOT to have a title insurance policy, especially in a multi-unit condo, and especially in today's RE market.

 

[sheehs1]

Oh...good point Westernskies! I had not thought about liens against the builders from subcontractors on "condos" since it is a regional reputable builder...but as you basically said..."better safe than sorry". Thank you.

 

[DangerMouse]

Cliff, you are lucky in that Hawaii condo laws are quite strict. HOAs are required to have a 20 year plan and the funds to do all the work required in that 20 year plan. Before you finalise your purchase you are entitled to see the financials and the minutes of the HOA. The place we purchased in Honolulu, there had only been one owner that was delinquent in the past 12 months, that is he was 15 days late paying one month. There were no units in foreclosure and no fees outstanding. They did have a solid plan for doing all the additional works over the next 20 years with appropriate costings so we knew what we were in for.

In Hawaii many of the HOAs are really expensive. However you need to delve deeper to find out what is included. Some I looked at (Allure) included basic cable TV and basic telephone service, plus the usual water, trash and other maintenance. Others included just the basics of R&M, water and trash.

The biggie for me in Hawaii is check the HOA to see what they allow in terms of rental. For example, our property says a minimum rental period of 6 months. This works for us, because I think if you have a lot of holiday rentals in a complex you will have a different type of environment. You won't get to know your neighbours, plus I would imagine there would be more wear and tear on the property.

If there is any particular property you are considering let me know as I pretty looked at everything from Diamond Head thru to Ala Moana.

 

[Gotadimple]

When one buys a condo....is it wise to get an inspection (not an appraisal) or is it a waste of money. This development has been selling condos for about 2 years. The building my daughter is buying into was completed a month ago. I realize they could not be built or on the market if they had not passed all building codes...and that a lot of what we would like to know...is already behind walls.

I would not waive an inspection. The city building inspector may have missed something that another inspector will find. It's been my observation that the little things that get missed by the government inspector will come back to haunt you later. It is worth the few $$$ you spend on this -- as long as the inspector she hires is working for her, and not the real estate agent's transaction.

By that I mean, her agent should give her names of 2-3 inspectors. She should interview them and select one she has confidence in, based on his/her years of experience in inspections.

-- Rita

 

[clifp]

Martha, Nords, Dangermouse thanks very much for the help. I am pleasantly surprised to hear that Hawaii has pretty strict condo laws and require 20 year plans. I still have to convince myself that condo fees are good value. Unlike Nords I am not handy around the house so I'll be paying for maintenance either way.

 

[Nords]

I'd say an inspection is even more urgent for a brand-new home than for one that's had the [-]developer lawsuits[/-] kinks worked out of it over the last 10 years or so. Everyone fantasizes about moving into a brand-new fully-furnished home carrying just your toothbrush, but those are the owners who are going to learn about every one of the little problems that "escaped" the developer's attention.

Also...can she waived the Title Insurance Fee of $850.00 at closing? AFter all...with new condos...the title should not be a problem. Would you guys recommend she waive it?

I don't think the mortgage lender wants her to waive the lender's title insurance.

Another issue is who's owned the land before the developer-- a Native American tribe may be able to tie the litigation up for years, let alone make a legitimate claim.

 

[Brat]

Inspection: remember that all the building inspector can only address life-safety code issues. S/he does not inspect the quality of the instillation of the siding underlayment, whether or not the fake stucco siding is appropriate for the climate (let alone whether or not it has drainage mats), whether or not the windows were flashed correctly, or whether the mechanical ventilation system is appropriately sized. Code is a MINIMUM standard. I have high regard for electrical inspectors but even they cannot stray from what is permitted, otherwise that aluminum wiring permitted in the past would never have been installed. My husband is an architect who 'observed' many a project, even caught one working on a weekend as he scooted underlayment as he applied siding - thought no one would notice. On a former neighbor's house the contractor applied siding inside out because he liked the look, no matter that it put the drip edge inside. That is not within the building inspector's purview.

Need I say more.

Find your own inspector who truly knows construction in all of it's aspects and who knows what goes wrong in your community. If the seller has a copy of the original building permit some of the old-timers know from the builder's name what to look for.

 

[sheehs1]

Thanks Gotadimple, Nords and Brat...good points all. Now I just have to make sure she follows thru with it.