Understanding Waikoloa Condo Ownership

For aspiring home buyers, a condominium can be an attractive option. Condos are typically more affordable than single-family homes and require less maintenance, and they’re often situated near shops, entertainment, beaches or golf courses. If you’re considering a condo purchase in Waikoloa, here’s a primer that will help you evaluate your options and maximize the enjoyment of your new home.

When I own a condo, what do I own?

Condos are usually individual units within a residential building complex. Unlike a single-family home, which usually includes the lot on which the home is built, a condo typically includes the individual unit and a percentage interest of the land, building, common areas and amenities.

What do I need to know about amenities and assessments?

Most condos offer secure building access and they may have amenities, such as swimming pools, fitness centers, BBQ areas. You’ll pay a monthly assessment that covers maintenance of the communal property and amenities. In some properties, assessments also cover select utilities.

How are building decisions made?

Condos are governed by a condo homeowners association (HOA), headed by a volunteer group of unit owners. 

What are my responsibilities as a condo owner?

The HOA makes and enforces a set of rules known as covenants, conditions and restrictions (CC&Rs), which are officially recorded and filed with the state. The HOA also has a set of bylaws that cover the day-to-day governance and may have other rules and regulations that are updated seasonally or as needed. All unit owners are expected to follow these rules, which are designed to safeguard the community and protect property. They cover such things as noise, pets, parking, renovations, renting, and a lot more.

What due diligence is required when purchasing a condo?

• Talk to your lender and insurance agent. With condo sales, in addition to qualifying you for the loan, lenders consider other factors, such as the HOA finances and the percentage of units in the building that are rented versus owner-occupied. You’ll also need a condo insurance policy.
  
• Request a copy of all governing documents from the HOA including the CC&Rs, bylaws, and rules and regulations and review them carefully so you know what’s expected of you as an owner. 
  
• Find out about the HOA’s finances and how much it has in reserves. The healthier the reserve fund, the less likely it is that the COA will have to issue a special assessment (an added fee levied on unit owners) to cover major repairs.
  
• Ask about any past or planned special assessments. If special assessments have been levied frequently, it might be a sign of poor management or poor building condition. If you’re considering a purchase in a building where a special assessment is coming up, you may be able to negotiate with the seller to cover all or some of the cost.
  
• Find out about fees and fines for violating the HOA’s rules and regulations, and find out how to submit questions, issues and concerns to the HOA.

After the purchase: Keep contact information for HOA board members and attend the meetings to stay informed about the governance of your new community. The more you know, the better prepared you’ll be to enjoy ownership of your condominium home.

Ready to take the next step toward condo ownership? Contact me today for personalized support and local market insight.