M.D. from New Jersey writes:
Dear Mister Condo,
How can I get out of a 100-unit condo development where only 20 units pay maintenance and road dues? The association painted over rotten wood siding 4 years ago! They cut what little grass there is every two weeks that’s about the extent of the maintenance for last 10 years. Retaining walls falling down, parking lots are sliding in to the building, the roof leaks with ice build-up and more. Help!
Mister Condo replies:
M.D., I am so sorry for your problems at this poorly run condo association. While I’d like to think I have “head it all” when it comes to condo craziness, clearly you have provided a Top 10 Bad Condo story. Obviously, you want to get out of this poorly run association before the units are condemned or deemed not worthy to sell. The good news is that there is “an ass for every seat” and if you price it right, you just might be able to cut your losses and buy into a properly run association. Without the benefit of a crystal ball, I will make a few predictions about your current association. With 80% of unit owners not paying their fees, the association will collapse. Vendors who are owed money will sue the association at some point. Even unit owners such as yourself could sue the association for not fulfilling its obligation to maintain the common elements. Even one lawsuit could bankrupt the association. If the association is to survive, it would likely be due to receivership (the court appoints an attorney or property management firm to run the association) at which time special assessments would likely be levied and common fees raised significantly. The 80% of unit owners who aren’t paying fees would likely default and eventually lose their homes through foreclosure. The bottom line is that unless you really love your unit and are willing to live through the chaos and expense of such an action, it just isn’t worth sticking around to see how it plays out. If I were you, I would sell as quickly as possible, even at a loss if I had to, and make sure the next association you buy in to is properly run and funded. All the best!