Hello everyone,
I am interested in knowing peoples perception of HOA's in condominium projects vs the Administration.
I believe it is quite different than North America and I see HOA's as a positive addition to the Condominium projects. Albeit, most new projects do not have HOA's. Creating an HOA is a process and it takes time and money and commitment. Many people will not take the time or initiative to try and establish one.
The developer\builder will tell you that the "condo Association" is formed upon the sale and delivery of the first condo. This is true. The "condo Association" is comprised of owners and the Administration. However, in many cases the Builder\developer rules everything. In the case of large projects that might take years to complete, the owners of the condos are left helpless as they cannot possibly raise enough votes to address any maintenance or other issues they might have.
This is where a HOA comes in useful and can accumulate owners votes in a way that can make a difference. Owners helping owners. That is providing the Administration follows the law which is seldom the case.
The owners decide on an HOA fee (or not) and then the fee is used for whatever the owners decide. Whether it be upgrades, services or just to have a fund for emergencies such as legal fees to fight the Administration.
Many developer\builders make there own rules (of course against the law) but many people are unaware of this and consequently are taken advantage of. The regulations are often written in favor of the developer\builder.
So if you are contemplating buying a condo in a new development, ask the question: do you have an HOA? If the answer is no, then this can be a huge disadvantage to buying there.
Then it is time to ask more questions, such as who makes up the Administration and how will the maintenance be administered?
Thoughts? Criticisms?