Special Assessments – Who? What? Where? Why? You get the picture. A special assessment is SUPPOSED to be for items not budgeted for by the association board. However many associations do not set aside any money for anything other than the typical expenses so if there’s any kind of an ‘unexpected’ expense then they require a special assessment to pay for it. And, yes you must pay a properly levied special assessment. The condo or HOA recorded documents will spell out the process for levying and collecting a special assessment. And let’s face it. NO one likes to pay these BUT when many owners are presented with a budget that includes reserves for replacement for depreciating common elements like roofs, parking lots and sea walls they ‘balk’ at the high monthly fees. If a condominium has a “fully funded” reserve account then this is something which is valuable to a buyer although it typically comes with high fees than can scare them off. The Marina Tower building, in fact all the associations, at Old Port Cove is a great example of this. The fees are over 800 a month BUT they just completed all kinds of sprinkler retrofit and exterior concrete repairs with very little $$ as special assessments from owners.
Financing a Condominium in Florida
What to look for when buying a condominium in Florida that requires financing?
There are all kinds of loan products out there and the underwriting rules vary considerably but generally one wants to use a ‘conforming’ loan product as these get the best loan rates. Conforming loans are Fannie/Freddie loans and when they talk about loan approval they use the term ‘warrantable’. Typically, a condo is considered warrantable if:
- No single entity owns more than 10% of the units in a project, including the developer
- At least 51% of the units are owner-occupied
- Fewer than 15% of the units are in arrears with their association dues
- The homeowners association (HOA) is not named in any lawsuits
- Commercial space accounts for 25 percent or less of the total building square footage
- The Association transfers AT LEAST 10% of its annual budget into a reserves account. So if the association collects 100k a year from its members then it must set aside 10k of that into a reserve account.
The last one is typically the problem. Many associations do not do this even though 10% is a modest amount. $50 out of a $400 per month maintenance fee would be 12.5%
Post Occupancy Agreement
A post occupancy agreement is used infrequently in Florida but it does come up from time to time. Note that a residential lease DOES survive a sale so this is only applicable when the property is not encumbered by a residential lease but rather it is the Owner who wants to remain in possession AFTER the sale. Most of the time the Buyer wants the Seller out of the Property at Closing. While this certainly makes it easier for all those involved there are occasions where it is beneficial to the Seller, and perhaps even the Buyer, for the Seller to occupy the Property after the sale is closed. The standard FAR and FAR BAR amendment to the base Contract basically lays out: Who is going to pay for the lawyer to draft the post occupancy agreement. And, when one must be approved by both parties. It’s an agreement to enter into an agreement within a certain time line…
HOWEVER, If you are a Realtor and a cooperating member of the South Broward Board of Realtors then this document will be in your Form Simplicity program and, although a pretty basic Post Occupancy, I am told that IF it is then it MAY be used…
A few things to keep in mind in a post occupancy are:
- The Buyer is (assuming it is an As-Is Contract) accepting the Property in the As-Is condition at Closing. How can it be inspected (walk through) if the Seller has not vacated the Property?
- The Seller (now the occupant) must agree to maintain the property in the condition it was received in at Closing, but what exactly is that?
- Does the association allow leases? If they only allow say one a year does this count as that single lease? What about if they do not allow leases at all in say the first year or even two, will they allow this?
- Does the Lender for the Buyer allow the Buyer to NOT occupy the Property right after Closing? If the Buyer is getting a loan based upon the Property being their primary residence then the loan/mortgage covenants will require that they occupy the property as such within (and this may vary) 60 days of Closing. Even if not their primary residence then will throw a flag as an investment property instead of a second home?
- Who will insure the Property? The Seller can no longer do this as one can NOT insure what one does not own. They can get renters insurance but the property must be insured by the new owner (Buyer).
- Should the Seller (now the occupant) pay rent? how about a security deposit for any damage? If so, who holds onto that money?
Terra Cotta Wall Construction
Every now and then I’m showing or selling a house in the historic districts of West Palm Beach and the walls are not Concrete Block. Nor are the walls wood framed. They’re something different. They look like the color of unglazed “Mexican” floor tiles or clay roof tiles. What are these?
These homes were constructed with structural terra cotta blocks used for the exterior walls and sometimes interior load bearing walls. Some Realtors or property owners will refer to them as hollow structural tile, hollow tile block, hollow building tile, structural clay tile and structural clay load-bearing wall tile. The Palm Beach County Property Appraiser notes it as ‘ADOBE/HOLLOW CLAY BLK‘ and in the local MLS it is simply noted as Hollow Tile.
What is the history of Terra Cotta Wall Construction? In the 1920’s through about 1950 in Florida some local houses were constructed with what was considered to be a superior building material to wood frame walls. These were hollow building blocks (similar to masonry block) but made from terra cotta. Yes, that’s terra cotta like the old school pots for plants. These were stacked and mortared in place to create exterior walls and sometimes interior walls (typically the bearing wall) which were then covered with stucco on the exterior, wood lath and plaster on the interior. Although they are not as ‘strong’ as a Concrete Masonry Unit (CMU as in CBS) they are certainly superior to wood and were more expensive at the time of construction which is why they are found in more affluent older communities. They did not have steel reinforcing which is why they do not perform as well as modern concrete masonry in things like earthquakes but in Florida who cares. In a wind storm (hurricane) they would be superior to wood fame but inferior to later era concrete block (CBS) houses. In every day life they would be better at resisting termites, and don’t rot or retain moisture like wood frame. BUT fastening things like hurricane panels to them can be difficult as they tend to ‘blow out’ the back of the clay tile when hammer drilling in the anchors.
Bottom line – Clay structural tiles are better than wood frame but not as good as concrete block and stucco (CBS).
CLICK HERE to read my blog post about the definitions of some other items you may see in the Property Appraisers page.
Who pays for what when a water pipe breaks?
Question: When we were not in residence, a pipe under the concrete slab in our first floor condominium unit needed repair. This pipe supplies water to our unit and to the one adjacent to ours, serving a total of 24 units. Approximately two inches of water was found in our unit. Plumbing and concrete contractors were called in by our management company and repairs were made. Jack hammering the concrete, removing 3-4 feet of sand, finding and fixing the pipe leaks in multiple places, returning the sand, and sealing the slab with new concrete were all required. New baseboard molding was installed and painted, and a small piece of drywall was installed where necessary.
These services were paid for by our condo association. A “dry-out” company was hired by our management company to remove water and deal with wet carpeting and wet floors so that the above mentioned repairs could be done. Fans and a dehumidifier were installed and remained for 5 days.
Now, here lies our problem. This incident occurred in June, and we have just this past week received a bill from our management company for “dry-out” services in the amount of $5,700. We have been told that this payment is our responsibility and NOT the condo association.
Back in June we filed a claim with our homeowner’s insurance company and have already accepted payment and have had new carpeting and flooring installed. We do not understand how some of the repairs are the condo association’s responsibility, but others are not. Your input would be greatly appreciated. – W.W., Stuart
Answer: It is a matter of negligence. The Association has an obligation to maintain, repair and replace pipes that serve the units and the common elements. If the Association had no reason to believe the pipe under your unit was going to break and cause water damage, then the Association was not negligent in failing to maintain the pipe. As such, the water break and resulting flood was the result of an unforeseeable accident. In such cases the Association must make the repair and pay for the items that the Association insures for accidents (called an insurable loss or casualty).
The Association’s casualty insurance does not cover personal items in your unit or carpeting. So, when the accident occurred, you are responsible for the items that the Association does not insure, such as drying out your carpet and personal items. That is what your homeowners insurance policy covers. Alternatively, if the Association knew or should have known that the pipe was about to break and cause damage and did not take timely action to prevent it, then the Association could be deemed negligent, and while you would still have to pay for your share of the dry-out costs, you might be able to recover the cost from the Association.
Richard D. DeBoest II, Esq., is co-founder and shareholder of the Law firm Goede, Adamczyk, DeBoest & Cross, PLLC. The information provided herein is for informational purposes only and should not be construed as legal advice.
The publication of this article does not create an attorney-client relationship between the reader and Goede, Adamczyk, DeBoest & Cross, PLLC or any of our attorneys. Readers should not act or refrain from acting based upon the information contained in this article without first contacting an attorney, if you have questions about any of the issues raised herein. The hiring of an attorney is a decision that should not be based solely on advertisements or this column.
Editor’s note: Attorneys at Goede, Adamczyk, DeBoest & Cross, PLLC., respond to questions about Florida community association law. The firm represents community associations throughout Florida and focuses on condominium and homeowner association law, real estate law, litigation, estate planning and business law.
© 2019 Journal Media Group, Richard D. DeBoest
14208 Harbor Lane, Palm Beach Gardens FL 33408 in Paradise Port
The Community name is the best description for this property – Paradise Port in Palm Beach Gardens. The home at 14208 Harbor Lane is a 4 bed, 4 bath/3 car garage 2004 CBS home at the end of a cul de sac, with eastern exposure, on 105 feet of sea wall. Deep water (5 at MLW) and no fixed bridges, dock for 4 boats includes a 40k lbs lift in 45 slip. No HOA. unincorporated PB County = lower taxes. This home has all the amenities one would expect like 12 cathedral ceilings, mahogany front doors, central vac, 15 KW generator (propane), salt water pool with heated spa and Jandy wifi controls, custom kitchen cabinetry with cook island sun Z and granite counters, plantation shutters, California closets, HUGE master suite with a retreat area, WI shower, his/her vanities and WIC’s. 2 zones AC replaced in 2015 with 1 ONLY for the master. Sit and relax after a day on the boat in the waterside tiki area.
HIGHLIGHTS
3200 U. Air, 4500 SF Total CBS Built in 2004 to the 2001 FBC 140 MPH Exp B
Full impact rated hurricane panel protection.
Flood zone is shaded Zone X (Old Zone B, NOT IN SFHA) with BFE = 4’ (‘88 Datum). Top of the sea wall is 3’ (‘88 Datum).
Gourmet kitchen with vegetable sink, ¾ HP Garbage Disposal, GE Monogram Refrigerator, Dual GE Monogram wall ovens, GE Monogram warming drawer, (5) burner gas cook top
500Lb Liquid Propane Gas tank for generator, cook top, pool heater, water heater, & Clothes dryer,
15 KW propane powered generator with Generac transfer switch runs full house with both the 2 ton & 4 ton AC’s plus essentials during a hurricane.
LG Front Load clothes washer and dryer.
2014 4 ton Rheem RH1T48 A.H. with Rheem 14AJM49A01C.U. (installed 2015).
2014 2 ton Rheem RH1T24 A.H. with Rheem 14AJM19A01 C.U. (installed 2015).
2003 75 Gallon LPG American Water Heater
Nutone whole house vacuum system with kick board sweep locations in kitchen.
Water, sewer and power connection for a future summer kitchen in place.
Pool – pool and spa (heater disconnected) with Jandy Aqualink RS controls with wifi connected control unit for pool, spa, heater, lights ect. Hayward Aquarite Goldline salt chlorine generator, baby barrier.
40,000 Lb lift with Tigershark remote control system, W = 18’ L = 45’
(2) 38’ X 18’ wet slips with 5 at MLW
(1) 38’ X 15’ wet slips with 5 at MLW
Zoned sprinkler system with new controls and a Mosquito magician automatic mosquito control unit.
Low voltage exterior landscape lights.
Tiki hut with power run to it.
- « Previous Page
- 1
- …
- 85
- 86
- 87
- 88
- 89
- …
- 148
- Next Page »