frequently asked questions on purchasing a condo
We have assembled a sheet of “Frequently Asked Questions” on purchasing a condo in the East College Street project. If you have others feel free to contact us via e-mail or phone.
Frequently Asked Questions
Q. What exactly is a “condo”?
A. A condominium can be defined as “The absolute ownership of a unit in a multi-unit
building, plus an undivided interest in the ownership of the common elements, which are
owned jointly with the other condominium unit owners.”
Essentially, you own your unit from the drywall inwards, plus a share in the “common
elements” of the remainder of the property, i.e. the lobby, hallways, the courtyard, the
outside residential parking areas.
Q. What are the financial obligations of a condominium owner?
A. a) Real estate taxes. b) Monthly mortgage payments, if you took out a loan to purchase your unit. c) Monthly condominium fees representing the owner’s proportionate share of the costs of maintaining and operating the property. d) Insurance coverage for the contents of the condominium unit and general liability, similar to a Homeowner’s Insurance policy for a house. e) Utility bills for any utilities metered individually to the unit.
Q. What is covered by my monthly condominium fee?
A. Building insurance, snow removal, landscaping, building management, legal and
accounting services for condo association, cleaning services, garbage removal, outside
building maintenance, replacement reserve accounts, and common area utilities.
Many of these costs are shared with the commercial tenants on the first floor and
apportioned to residents based on their percentage of ownership (square footage of your
individual units). Please ask for Attachment 3 of the Disclosure Statement for a full estimate
of condominium fees.
Q. What are “replacement reserves” and how are they calculated?
A. Replacement reserves are money that is set aside each year out of the condo association’s budget to cover large future expenses (a new roof, replacing the carpet in the hallways, etc). This minimizes the uncertainty of future condominium fees or assessments. The annual contribution to the replacement reserves is currently set at 10% of the overall operating budget of the condo association. Similar condo projects have found that saving 10% annually is a good benchmark to maintain.
Q. What warranties come with my unit?
A. SCA provides a complete warranty for any defects in materials or workmanship for the first year. All appliances, fixtures, cabinets, etc., come with the standard manufacturer’s warranty in addition. Major building systems come with their own warranty. For instance, the roof has a 15-year warranty, the sheet metal flashing has a 20-year warranty, the cement board siding has a 25-year warranty. The Milgard windows have a lifetime warranty and the Anderson doors have a 20 year warranty.
Q. Do I need to purchase homeowners insurance?
A. Insurance for the common elements and general liability around the property is covered in the monthly assessment fee. Coverage for your personal property is not included and you will be required to obtain private insurance.
Q. Does my condo purchase qualify for any federal housing tax credits?
A. Congress just passed an expanded version of the home buyer tax credit that expired on November 30th. The tax credit remains at $8,000 for first time home buyers. The tax credit program has also been expanded to include a $6,500 tax credit for home buyers who have lived in their current primary residence for at least five consecutive years out of the past eight years. If either of those conditions are met, you are eligible to take the tax credit if your purchase contract is executed by April 30, 2010 and you close on the unit before June 30, 2010. Condos will be ready for move-in as early as May, 2010 so that residents can meet these requirements. The income limitation for single tax payers went from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went from $150,000 to $225,000.
Q. Can I rent my condo?
A. Yes provided that all sub-leasers, tenants, or individuals residing in the unit other than the owner shall be approved in advance by the condominium association.
Q. How will the workforce rental units function?
SCA will own, manage and maintain between 7 and 13 units that will be available to rent.
These units are designed for people of modest income who are working or retired who
would like to join the East College Street community. Before a tenant can move in they
will need to be approved by both SCA and the condo association at-large.
Q. Will rental units pay the same monthly fees and share in any assessments?
A. Yes
Q. Who is responsible for the maintenance and management of the building?
A. SCA, as the developers of the property, will be responsible for the initial maintenance
and management of the building. Ultimately, that will transfer to the elected Board of the
condominium association, to which all owners belong. The Board can retain the services
of SCA’s management company or it can hire a new professional management agent or
company. Direction of the management company rests with the elected Board, who must
approve the annual budget, set the level of services to be provided and make major policy
decisions relating to the operation of the property. Frequently, resident committees form
to investigate or oversee specific areas such as finance, operations, house rules or social
activities to make recommendations to the board. Major capital expenditures will require
approval of at least a majority of the voting interest of the condominium association.
Q. What does the building management company do?
A. The management company is responsible for the administration of the operating
budget, collection of monthly assessments, maintenance of the common areas,
supervision of all employees and contractual services, responding to problems within the
building as directed by the Board, preparation of a suggested operating budget and
reporting accurately to the association all monies received and spent.
Q. Will access to the residential portion of the buildings be restricted to owners and
renters?
A. Yes. A security system will be in place to ensure that access is limited to residents and
their guests.
Q. Are pets permitted?
A. Yes! 2 dogs or 2 cats or a combination of each.
Q: How is this a green building?
A: For more information on the sustainable features of the building see the sustainability section of our website