When buying a home in any neighborhood, there are some universal questions. How close is it to public transportation, grocery stores, restaurants, and if applicable, schools? But each condominium project is its own micro neighborhood within a neighborhood. In the Park City area, the original ski condos were built in the 1960’s and some of the Deer Valley condos date back to the early 1980’s. There can be a lot of history in these buildings! Below are some basic questions we research when working with buyers or sellers of condominium projects.
- Review the Seller Disclosures, including the Seller’s Property Condition Disclosure, the
Covenant Codes and Restrictions (CCRs), HOA Minutes and Financials. Prepare a written
list of any questions for the seller to answer. - Is there a transfer fee? The Canyons Resort Village Management Association (CRVMA)
charges a 2% transfer fee on every condo that sells in that area. Generally, the buyer
pays the transfer fee, but it is part of the negotiation. There may be an additional HOA
transfer fee in addition to a master association transfer fee. - Have there been any recent assessments or are any contemplated in the future? We
have seen assessments levied while we were under contract that were surprises to
buyers and sellers. Who pays assessments? That’s another term of the negotiation. - What do the HOA fees include? There are some amenity rich condominium projects
with high HOA dues because of the pool, hot tub, gardens, gym, van, and front desk.
These amenities cost money to provide, and that money will come from HOA dues.
Some HOA dues include all utilities, and some include a few utilities, such as internet
and water. It depends on how the building was metered when it was built. - Is there deferred maintenance? If the condominium project is new, this is not an issue.
However, a project that is 20 years old will soon need a new roof. When was the
exterior stained? This is an important conversation if the condominium is located in one
of the older developments. - Does the HOA have adequate reserves? All HOAs are required to set money aside as
reserves for capital expenditures. If there is a major issue, the HOA will need to assess
the owners to pay for it if the reserves are inadequate. - Understand the Rules for Rentals. Do you want the ability to do vacation or long-term
rentals? Understand the type of property you are buying.
Buying a condominium can be a great way to enjoy “lock and leave” ownership in the Park City
area. The HOA takes care of the landscaping and the building. However, all HOAs are not the
same and you want to do some investigating during your due diligence period. We have sold
hundreds of condominiums in the area and can be a great resource for help.