The Condo Assn. President is also a co-owner, residing in one of the condos under the Association rules. She is a realtor with a license and was contracted by one of the other co-owners to sell their unit as they have already moved out of state and wanted to work with someone they knew who would be motivated as a co-owner to get it sold and at a good price.
By itself, I'm not sure that is a conflict of interest. HOWEVER, this Condo Association President called a special meeting of the other Co-Owners (mostly retired folks who are easily led) and convinced a majority of them to give up their right of first refusal to purchase the unit she was selling as the real estate agent. The buyers wanted FHA financing and we were given some story about how that right of first refusal could be held as discriminatory and we could be sued. I disagree.
To the extent this Pres. is asking us to give up our rights so she can make commission, I think that would be a conflict of interest. Agree?Realtors: Would it be conflict of interest for Condo Assn. Pres. %26amp; Co-Owner to Agent other's condo for sale?
I am a Realtor and an attorney with experience in professional ethics. A professional conflict of interests can be cured by full disclosure and waiver of the conflict by the parties concerned. Is this woman a Realtor, or merely a licensed real estate agent? Realtors are members of a professional organization and are required to adhere to a code of ethics that does not apply to all licensees. You can see that code at the link provided below. I suggest that you read it over and see if there is some specific provision that she might have violated. It might help you frame your issues in more specific language. Your question does not so much involve this woman's role as a Realtor, but rather her fiduciary duty to the members as president of the HOA. Violations of conflicts of interests rules often involve a failure to disclose. It sounds like she disclosed her personal financial interest as an agent in the transaction so there is no obvious problem there. It would require further investigation to determine if she deliberately and knowingly misled the HOA in the decision making process. Your charge would then be that she failed in her fiduciary responsibility to the members and the board of the HOA. I don't know of any code of ethics for HOA officers, but provisions of the Civil Code, Corporations Code, Business %26amp; Professions Code or similar statues would impose legal duties on such officers. Your anlaysis has to be rigorous as someone's prefessional and community reputation is at stake. A mere conflict is not a violation, but it is the first in a list of questions that must be answered including whether there was a waiver, and whether that waiver was voluntary because the protected party was fully informed.Realtors: Would it be conflict of interest for Condo Assn. Pres. %26amp; Co-Owner to Agent other's condo for sale?
I disagree that this is a conflict of interest, as the Realtor will make a commission whether you buy it or someone else buys it.
Now, she may be protecting the condo association. Stick with me here. If currently there are over 50% of the units in the property with the owners living in them (owner-occupied), your property qualifies for FHA financing. It's called a ';Warrantable'; complex, and government backed financing is applicable there. When the property falls below 50% owner occupied, the property becomes ';Non-Warrantable'; and thus much harder to obtain financing for. This, in turn lowers the value of each of the units.
If one of you co-owners was to purchase the condo, it becomes an investment unit (non-owner occupied) and lowers the percentage of owner-occupied units. This may or may not make the entire complex Non-Warrantable.
The other point to this is as follows: depending on your Association rules there, if the Realtor has a buyer for the unit, she probably has to have each of you release your first right of refusal before title can transfer and the sale can conclude.
Feel free to contact a mortgage provider if you have further questions about warrantable and non-warrantable condos.
I've never heard of a right of refusal of a buyer of a property. That does sound like discrimination and a lawsuit waiting to happen. You can sell your property to whom ever you choose, so long as they are able to purchase it. If someone offered the seller asking price for the condo and the seller refused to sell it, the seller would be dizzy at how fast they get sued. If the agent has a VESTED interest, whether it be a family members place that they are selling, or they own part or all of the unit, they would have to disclose that. Otherwise there is no conflict of interest that I see.
I'm not sure about the 'conflict of interest' concern; but asking the owners to forfeit their 'right of first refusal' has its pros and cons.
In a bid for not relinquishing that right, owners have the opportunity to increase their land holdings. On the other hand, if something 'tricky' is in the makes on the HOA's side, it can be sued.
The link below outlines just what can occur. It really is up to each HOA to decide what will be more beneficial to its communities.
I think your ';conflict of interest'; argument is a great stretch. I also believe that your argument against FHA borrower's buying in is a false argument. How does it protect you from a buyer who has access to any number of loans available with credit scores down to 500 as well as a buyer with 25% down payment and a Hard Money loan that doesn't even consider the credit of the buyer.
Your assumption that FHA is for low grade credit worthy individuals is false. Many people with 700 credit scores may chose an FHA because of the low down payment requirement and/or low interest rates. FHA will allow a non-occupant co-borrower, Conventional loan will not. There are a myriad of reasons a high quality credit worthy person might choose or need an FHA loan.
It has already been pointed out that an owner occupied unit is far better for the 'protection' of the whole in terms of the owner-occupied ratios lenders look at when evaluating 'property eligibility' for a loan.
The agent, when citing possible discrimination suits, may be referring to the Federal Fair Housing Act and/or any State Fair Housing Act.
While it appears your organization has not stepped over the line yet, it does look like you are on the fence ready to fall over. Depending on the rest of the story, a good attorney could argue that while in fact you are not practicing discriminating on the surface, you are engaged in De Facto discrimination. The argument would go something like: since it can be proven that minorities do, on average, have lower credit scores, you are discriminating against them with your rules.
One more thing for you to consider here. Do some research and compare: How many FHA lenders vs. Non FHA lenders have recently gone out of business due to bankruptcy, and how many of the recent foreclosures were on what type of loan. I haven't done the research myself, but my money is on... there is no comparison; conventional far exceed the FHA.
Wednesday, July 7, 2010
What are some hidden problems associated with a condo for sale?
I am looking to but my first condo. I looked at one this weekend and the price is just too good to be true so I'm trying to figure out what could be wrong with it. Here are the details: It is a 2 bedroom, 3rd floor condo in a decent neighborhood in Chicago. It is available as the result of a foreclosure. It has new duct work, new electric and hardwood floors. The walls and celings look to be in good shape. The only things it will need are a refrigerator, dishwasher and a washer/dryer. The bathroom sink is complete except for the faucets. Other than that, it seems great. Now, here is the part that has me worried: It is only $50,000 and it has been on the market since January. Can anybody offer possible reasons it would be this cheap?What are some hidden problems associated with a condo for sale?
You should be leery since normal for Chicago is 200k. Knock on doors and ask the other residents what is wrong with the building.
Possibly and major bill from the association for large repair or renovation to the building. Ask your realtor what is the story.
You should be leery since normal for Chicago is 200k. Knock on doors and ask the other residents what is wrong with the building.
Possibly and major bill from the association for large repair or renovation to the building. Ask your realtor what is the story.
Landlord has placed condo for sale. What are my rights?
My husband and I originally signed our lease in July, 2006. We were moving into a neighborhood with a highly volatile turnover in ownership, and I was concerned with that when I signed the lease. In the lease, it is stated that the house can only be shown 30 days prior to the end of the lease. When we re-upped the lease in 2007, we only signed an amendment indicating the original lease was still intact and that the rate has increased. Now, the landlord is selling, and there is a lockbox outside my door! Do I have the right to termintate my lease based on the statment in the original lease? The landlord wants to keep the security deposit, while I feel he has violated the spirit of the contract, so I feel he has not been ';injured';. Any advice?Landlord has placed condo for sale. What are my rights?
The section on the lease that states they have the right to show the property 30days before the lease is up is pertaining to lease prospects not sale prospects. The owner or his agent must give you notice that it will be shown but usually only 24 hours, but they have every right to show. Sorry, if you break your lease he legally can keep your security deposit. The new owner if there is one legally has to keep the lease agreement unless you are on month to month. Hope this helps.Landlord has placed condo for sale. What are my rights?
Yes, you have rights here, since they are contractually stated and signed by both parties. You might want to take copies of your lease, send one to the landlord and one to the listing real estate agent, highlighting the section covering showings when the property is listed for sale.
If you elect to pursue this, you can prevail. My guess is that the real estate agent is unaware of this section of your lease, and would not wish to be in violation of same. Frankly, you can probably stay where you are until the end of your lease, since it's going to be extremely difficult to sell that property if you refuse to allow it to be shown, per your lease.
PART I. Check your lease and your local legal aid to see what your rights are in your state. While the other posters may be correct, in my state when the owner sells your lease is null and void. The new owner can ask you to leave- now.
PART II. The owner can show the property to buyers if he gives you notice that he is doing so. HOWEVER. If the lease actually states it can be shown only 30 days prior to the end then he's in violation if he shows it any other time, notice or not. That means, according to the terms you stated, he can't start showing it until June 2008. Additionally, he can't interfere with your ';quiet enjoyment'; of the property. In other words, he can't bring people by every day.
I suggest showing your contract to his Realtor and pointing this out.
PART III. Your security deposit is not for the owner's ';injury,'; real or imagined. ';Spirit of the contract'; my achin' patootie. Tell him to READ the contract. If he's even thinking about keeping the deposit because you're not happy about showing the unit he will lose in court.
Grrrrrr. I hate dumb owners.
Your lease will transfer to the new landlords that you will get. They can not change anything on your lease until it is up. You monthly payment will be the same and rules should stay the same also. The new landlord has to accept that. But things may change when you lease is up and the new landlord give you a new one! The exsisting landlord can show your home right now while it is on the market - but he/she needs to give you advance notice of when it will be showing. Good luck.
The section on the lease that states they have the right to show the property 30days before the lease is up is pertaining to lease prospects not sale prospects. The owner or his agent must give you notice that it will be shown but usually only 24 hours, but they have every right to show. Sorry, if you break your lease he legally can keep your security deposit. The new owner if there is one legally has to keep the lease agreement unless you are on month to month. Hope this helps.Landlord has placed condo for sale. What are my rights?
Yes, you have rights here, since they are contractually stated and signed by both parties. You might want to take copies of your lease, send one to the landlord and one to the listing real estate agent, highlighting the section covering showings when the property is listed for sale.
If you elect to pursue this, you can prevail. My guess is that the real estate agent is unaware of this section of your lease, and would not wish to be in violation of same. Frankly, you can probably stay where you are until the end of your lease, since it's going to be extremely difficult to sell that property if you refuse to allow it to be shown, per your lease.
PART I. Check your lease and your local legal aid to see what your rights are in your state. While the other posters may be correct, in my state when the owner sells your lease is null and void. The new owner can ask you to leave- now.
PART II. The owner can show the property to buyers if he gives you notice that he is doing so. HOWEVER. If the lease actually states it can be shown only 30 days prior to the end then he's in violation if he shows it any other time, notice or not. That means, according to the terms you stated, he can't start showing it until June 2008. Additionally, he can't interfere with your ';quiet enjoyment'; of the property. In other words, he can't bring people by every day.
I suggest showing your contract to his Realtor and pointing this out.
PART III. Your security deposit is not for the owner's ';injury,'; real or imagined. ';Spirit of the contract'; my achin' patootie. Tell him to READ the contract. If he's even thinking about keeping the deposit because you're not happy about showing the unit he will lose in court.
Grrrrrr. I hate dumb owners.
Your lease will transfer to the new landlords that you will get. They can not change anything on your lease until it is up. You monthly payment will be the same and rules should stay the same also. The new landlord has to accept that. But things may change when you lease is up and the new landlord give you a new one! The exsisting landlord can show your home right now while it is on the market - but he/she needs to give you advance notice of when it will be showing. Good luck.
We have a 4 bedroom condo for sale in Stuart, Fla for $229,900 or rent $1475.mth Anyone interested?
This is my vacation home and it is listed on realtor.com in zip 34997We have a 4 bedroom condo for sale in Stuart, Fla for $229,900 or rent $1475.mth Anyone interested?
I wan!Wad's the address?We have a 4 bedroom condo for sale in Stuart, Fla for $229,900 or rent $1475.mth Anyone interested?
sounds like a good deal, but not at this time
I wan!Wad's the address?We have a 4 bedroom condo for sale in Stuart, Fla for $229,900 or rent $1475.mth Anyone interested?
sounds like a good deal, but not at this time
Condo for Sale pricing?
I put in a bid today on a property that the exiting owner bought for 222,000 in 2004. Im in the same complex and have admired it for some time so when it came up for sale I immediately placed an offer due to its location and excellent layout and condition. The problem is my colleagues suggest that the market will continue to deteroriate and my bid should come in at 20% of his purchase price. They say that paying what paid for it is okay but be preapared to buckle in and watch this thing go down considerably first and why would someoen elect to do that.
My question is based on these facts would you press forward and pay pretty close to what he bought it for or sit as a casual obeserver and se things come down to earth and bid at that time. Im a renter presently so there is nothing forcing me into this arrangement (unless he accepts my intital offer which isnt likely) as its only been on the market a week.
In Massachusetts
Thanks for an responseCondo for Sale pricing?
The only way to answer this is to know what similar condos in the same complex have been selling for recently. It really has nothing to do with what he paid for it.
After researching the going price for that condo at that time, you have to decide if that's what you really want to do. Do you have the down payment to buy? Will you qualify for a mortgage?
As for the market declining, it may continue to decline. It may be that your investment in a home loses value over the next couple of years. If you plan on staying put for a long time, it probably really doesn't matter much in the big scheme of things. If you don't buy now and prices continue to drop, how much more rent will you have paid over the next year or two that you could have been putting towards a mortgage and reaping the tax benefit from?
Did you use a realtor to make the offer? If so, they can help you with researching the current value of the condo. Then again, if you used a realtor, they should have advised you on that before you made the offer.
Good luck to you.Condo for Sale pricing?
It depends on your time horizon. You cannot ever time the market perfectlly. The market is slow in a lot of places but if you are planning on staying in the house and it is a personal residence for 5-10 years than you should come out ahead. A lot of the bad news in commercial real estate is out there already. The many markets have had time to digest the information. There may be a little more down side but you can never know how long it will last. You can go to some website where they have rental vs buying analysis information or you can talk to a real estate agent and have them do a rental vs buy analysis for you. This will take in writeoffs, taxes, extra fees etc. Again the most important thing is your time horizon!
First off, ignore what the owner paid for the property. If he paid $220k, but similar units are now going for $200k, you should be bidding closer to that price - not what the owner paid. Your only concern is what is the market value of the property - not what the owner paid, or what his asking price is. (hopefully he's not being stupid and his asking price is close to what the market value is, but be aware these two prices don't always match.)
The market is in an uncertain state right now, and is going to be highly influenced due to the nearby location where the condo is located. Think a little about the types of industries and companies that are nearby. Do you think they'll continue to do OK - in which case people will still need places to live, keeping prices stable. Or do you think they're going to lose people - in which case people may leave the area, causing prices to fall. How are other condos/houses in the area doing? Are they selling quickly, or are they staying on the market for months even after several price reductions? Also consider nearby schools. A good school district is always a good way to keep prices stable, and provide an excellent way to keep your asking price high when you eventually move out.
Finally, what are your own plans? If you foresee yourself staying in this place for 5-10 years then you'll probably do OK. Remember, this will be your HOME first. Yeah, we all hope our house's market value appreciates, but it's far more important to be living some place you can afford and are comfortable in. Even if your house does appreciate considerably, it's not as though you can use that money (not directly, anyways) without selling the place.
It's also highly unlikely that your rent will go down, even if housing prices do. So if you manage to get a fixed mortgage for about what you were paying in rent, consider that a big victory. After all, you'll now be acquiring equity which is something you can never do just paying rent.makeup show facial moisturizer
My question is based on these facts would you press forward and pay pretty close to what he bought it for or sit as a casual obeserver and se things come down to earth and bid at that time. Im a renter presently so there is nothing forcing me into this arrangement (unless he accepts my intital offer which isnt likely) as its only been on the market a week.
In Massachusetts
Thanks for an responseCondo for Sale pricing?
The only way to answer this is to know what similar condos in the same complex have been selling for recently. It really has nothing to do with what he paid for it.
After researching the going price for that condo at that time, you have to decide if that's what you really want to do. Do you have the down payment to buy? Will you qualify for a mortgage?
As for the market declining, it may continue to decline. It may be that your investment in a home loses value over the next couple of years. If you plan on staying put for a long time, it probably really doesn't matter much in the big scheme of things. If you don't buy now and prices continue to drop, how much more rent will you have paid over the next year or two that you could have been putting towards a mortgage and reaping the tax benefit from?
Did you use a realtor to make the offer? If so, they can help you with researching the current value of the condo. Then again, if you used a realtor, they should have advised you on that before you made the offer.
Good luck to you.Condo for Sale pricing?
It depends on your time horizon. You cannot ever time the market perfectlly. The market is slow in a lot of places but if you are planning on staying in the house and it is a personal residence for 5-10 years than you should come out ahead. A lot of the bad news in commercial real estate is out there already. The many markets have had time to digest the information. There may be a little more down side but you can never know how long it will last. You can go to some website where they have rental vs buying analysis information or you can talk to a real estate agent and have them do a rental vs buy analysis for you. This will take in writeoffs, taxes, extra fees etc. Again the most important thing is your time horizon!
First off, ignore what the owner paid for the property. If he paid $220k, but similar units are now going for $200k, you should be bidding closer to that price - not what the owner paid. Your only concern is what is the market value of the property - not what the owner paid, or what his asking price is. (hopefully he's not being stupid and his asking price is close to what the market value is, but be aware these two prices don't always match.)
The market is in an uncertain state right now, and is going to be highly influenced due to the nearby location where the condo is located. Think a little about the types of industries and companies that are nearby. Do you think they'll continue to do OK - in which case people will still need places to live, keeping prices stable. Or do you think they're going to lose people - in which case people may leave the area, causing prices to fall. How are other condos/houses in the area doing? Are they selling quickly, or are they staying on the market for months even after several price reductions? Also consider nearby schools. A good school district is always a good way to keep prices stable, and provide an excellent way to keep your asking price high when you eventually move out.
Finally, what are your own plans? If you foresee yourself staying in this place for 5-10 years then you'll probably do OK. Remember, this will be your HOME first. Yeah, we all hope our house's market value appreciates, but it's far more important to be living some place you can afford and are comfortable in. Even if your house does appreciate considerably, it's not as though you can use that money (not directly, anyways) without selling the place.
It's also highly unlikely that your rent will go down, even if housing prices do. So if you manage to get a fixed mortgage for about what you were paying in rent, consider that a big victory. After all, you'll now be acquiring equity which is something you can never do just paying rent.
Where in Gainesville fl is 3 bedroom condo for sale less than $150,000?
with garage on ground level.Where in Gainesville fl is 3 bedroom condo for sale less than $150,000?
Fantasy island.Where in Gainesville fl is 3 bedroom condo for sale less than $150,000?
You probably won't be finding any 3 bedroom condos with a garage.
Especially not for under 150,000.
Try Uptown Village I thought they may be Townhome like- the closest you will get to a condo with a garage.
try looking here http://www.goDuru.com ...good luck
go to www.realtor.com and enter your criteria
Fantasy island.Where in Gainesville fl is 3 bedroom condo for sale less than $150,000?
You probably won't be finding any 3 bedroom condos with a garage.
Especially not for under 150,000.
Try Uptown Village I thought they may be Townhome like- the closest you will get to a condo with a garage.
try looking here http://www.goDuru.com ...good luck
go to www.realtor.com and enter your criteria
Besides CraigsList, how do I freely advertise my Condo for sale in Connecticut?
Here is the CL listing
http://newyork.craigslist.org/wch/rfs/17鈥?/a>Besides CraigsList, how do I freely advertise my Condo for sale in Connecticut?
http://www.backpage.comBesides CraigsList, how do I freely advertise my Condo for sale in Connecticut?
you may be interested in the craigslist automatic posting tool at www.craygo.com
Think about creating your own web-page. You can provide the link in all of your ads and give the property more exposure. Yahoo! has a lot of great tools for website building. If you want a free site check this link: http://geocities.yahoo.com/join/
OR
You could purchase your own domain at: http://smallbusiness.yahoo.com/domains/
Then use Yahoo Site Builder to create your own site.
http://webhosting.yahoo.com/ps/sb/index.鈥?/a>
Good luck. I'm in the process of helping my parents do the same thing here. It's a tough market out there and people are only now starting to see it.
http://hartford.backpage.com/gyrobase/cl鈥?/a>
You could visit local corporate companies and put your advertisements on the employee break room. Something along the lines of ';Walk to work';. I rent my properties with ease using this idea.
Regards
http://newyork.craigslist.org/wch/rfs/17鈥?/a>Besides CraigsList, how do I freely advertise my Condo for sale in Connecticut?
http://www.backpage.comBesides CraigsList, how do I freely advertise my Condo for sale in Connecticut?
you may be interested in the craigslist automatic posting tool at www.craygo.com
Report Abuse
Think about creating your own web-page. You can provide the link in all of your ads and give the property more exposure. Yahoo! has a lot of great tools for website building. If you want a free site check this link: http://geocities.yahoo.com/join/
OR
You could purchase your own domain at: http://smallbusiness.yahoo.com/domains/
Then use Yahoo Site Builder to create your own site.
http://webhosting.yahoo.com/ps/sb/index.鈥?/a>
Good luck. I'm in the process of helping my parents do the same thing here. It's a tough market out there and people are only now starting to see it.
http://hartford.backpage.com/gyrobase/cl鈥?/a>
You could visit local corporate companies and put your advertisements on the employee break room. Something along the lines of ';Walk to work';. I rent my properties with ease using this idea.
Regards
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