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Why Condofax

When you are searching the web or using a Realtor to buy a condo, the condominiums that are listed for sale advertise dues that are a provable misrepresentation and therefore, a complete illusion. David Copperfield would make for the perfect Treasurer in today’s condominium associations. Fun for them, not for the individual that is buying a condo.

The standard assessment (dues) is supposed to be an accurate reflection of all the buyers cost to live in the condo association, separate from the mortgage and tax payments one has to make after purchasing a condo.  This is important to be accurate because a condo buyer has budgeted a certain monthly amount that they can pay for homeownership, and lenders qualify these same buyers based upon their income and expenses in relation to that income.

However, accuracy doesn’t exist when it comes to condominium dues and accounting. Condominium dues are understated and are done purposely so, to both keep the monthly payments lower for the current owners and to make condo units more attractive for condo buyers when listed on the market.  What condo buyer sees high dues as a selling point?

The Importance of the Reserve Study

There is however, a blueprint that proves this is the case with almost every condominium association in the country, and underlines how these corrupt practices take advantage of unknowing condominium buyers.

A reserve study is an analysis of the condominium association project, what needs to be repaired or replaced and when, and what the projected cost is of the repairs for the condominium.  This condominium reserve study outlines what the dues need to be for there to be money in the bank when the condominium repairs have to be done.   While mandated by most states, is not required to be followed and consequently, almost never is by the condominium association.

To make condominium dues even more illusory, many condominium associations simply refuse to order a condominium reserve study because they don’t want to spend a bunch of money to get the bad news that their condominium association is in bad financial shape. Ignorance is bliss for many associations and sellers, leaving the buyer nothing to review to determine what the dues of the association are really going to be.

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Why Choose The Condofax Report

The Condofax report analyzes and investigates the reserve study, financials, dues, budgets, expenditures, minutes, litigation, insurances, and many other aspects of a condominium association to give a clear picture to the condominium buyer as to the operational and financial condition of the HOA, to give them the ability to negotiate with the condominium seller on the condition of the condominium association, or to cancel the condominium purchase altogether should they be unable to come to terms with the seller on the deficiencies revealed.

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