Ginny's RI House Hunt Blog: January 2011



There has been alot of talk lately regarding the health of RI condo associations especially in other states.  I would like to share Lenn Harley's informative post about condo associations that are not financially sound.  What do you need to know prior to buying into a condo complex?  If you work with a knowledgeable and investigative Realtor who protects your interests, they will 'root' this information out early.  Be aware, be knowing and always ask the right questions.



That was a question from a home buyer yesterday.  This is a cash buyer in the market for a condo in Prince William County to use as rental property for a few years and then live in when he sells his present home. 

THE QUESTIONS WERE PROMPTED BY THE LISTING REPORT.  There are three properties offered for sale in that community, two short sales and one regular home owner sale.  One of the short sale listings wants "Cash Only, too many distressed sales for financing.  Condo assn. in trouble" 

HOW CAN THE CONDO ASSN. PAY THEIR BILLS?  The buyer's question is well founded since, under normal circumstances, when there is a high percentage of delinquent owners, the condo fee will be raised for remaining owners to cover condo expenses.  Maintenance of condo buildings, trash removal, grounds maintenance, snow removal, insurance, etc. are critical to protect the value of the property. 

WHAT DOES "Condo assn. in trouble" mean?  Condo associations are required by law to maintain certain condo"reserves" to protect the owners under special circumstances or a dramatic increase in expenses OR a high degree of delinquencies.  As delinquencies increase, the remaining owners will have to pay higher fees or assessments to cover necessary expenses.  If there are insufficient funds to operate, condo associations may not be able to make payments for contracted services and loans.  Condo owners who refuse to approve increased fees to compensate for delinquencies are merely putting the entire community at risk if the condo association is forced into bankruptcy or receivership. 

IT GETS WORSE.  As delinquencies increase, the condominium project may also lose FHA and VA financing approval.  In all but super luxury projects, that's usually deadly for property values and purchase financing. 

OWNERS STOP PAYING FEES.  This is a trend in many condo and HOA associations.  Sadly, it simply makes matters worse, puts the home owners' credit at risk and further limits the ability of the condo associations to perform critical maintenance.

WE DON'T GIVE LEGAL ADVICE.  Since the buyer's question involved a legal matter, my suggestion to my broker partner was to speak with a real estate attorney with whom we do settlements,   This questions is clearly "above our pay grade".  That said, I suggested that they search a bit farther for a condo to buy in a building that is not "at risk". 

CAN YOU GET A "PEEK" AT THE DOCS?  I also suggested that the listing agent or owner may already have a copy of the condo docs and would permit a "peek" prior to writing an offer.  The association docs must disclose the financial condition, any liens against, etc. the association.  It's worth a phone call. 

Courtesy, Lenn Harley, Broker,, 800-711-7988. offers home buyers help throughout Prince William County in:

  • Bristow * Dumfries * Gainesville * Manassas * Triangle * Woodbridge * Haymarket

Woodbridge Homes and real estate.Lenn


SEARCH Homes for sale in Prince William County in Catharpin, Dumfries, Haymarket, Gainesville, Manassas, Manassas Park, Bristow, Nokesville, Dale City, Woodbridge, Quantico, Triangle.  If you have questions about real estate in Prince William County, just call Lenn at 800-711-7988.  Ask about our Home Buyers REBATE.

Courtesy, Lenn Harley, Broker,, 800-711-7988.



Ginny Lacey Gorman knows North Kingstown RI and the geographic areaschools, local happenings, important tidbits of information and businesses well If you are looking for someone to guide you through the home buying or selling process, Ginny is a licensed Realtor® and would be happy to assist you. Waterfront, oceanfront and coastal RI homes for sale are her specialty but all of RI is her backyard.  So feel free to search for  RI homes for saleWhen you are in need of more information from an internet savvy Realtor® who sells RI houses in this real estate market,  call Ginny at 401.529.7849.

This blog © and its contents is original to Ginny Lacey Gorman

the RI waterfront Realtor of Choice


Ginny L. Gorman, a purveyor of Fine RI Waterfront Real Estate   

Specializing in waterfront, ocean front, vacation, coastal and luxury homes for sale in North Kingstown, South Kingstown, Narragansett, Jamestown, Charlestown, East Greenwich, Exeter, West Greenwich RI and beyond ...  I sell dreams!  Because there is no place like home...the RI Real Estate Agent in the Sparkly Red Shoes.


Looking for a knowledgeable Rhode Island Real Estate Agent?  Let me GOOGLE one for you!


Facebook   Flckr  LinkedIn RSS Feed to My Blog

You Tube button    Twitter Follow Ginny Lacey Gorman on Pinterest


cell: 401.529.7849      Ginny Lacey Gorman, Realtor



Comment balloon 8 commentsGinny Gorman • January 30 2011 06:53AM
There has been alot of talk lately regarding the health of RI condo associations especially in other states. I would like to share Lenn Harley 's informative post about condo associations that are not financially sound. What do you need to… more
It's all about the Westerly Homes for Sale - 3 Surrey Drive
This time of year brings out the serious buyers and it's all about the Westerly Homes for Sale especially at 3 Surrey Drive It is not often in this neighborhood off Potter Hill Road that you have a great family home with possible in law apartment… more
Prices Paid for Waterfront Homes- It's Always in the Eye of the…
I know I sometimes marvel at the prices paid for waterfront homes in RI -yes, it's always in the eye of the beholder which may not always be clear to me. What did the property uniquely have to offer to buyers that it was able to command such a… more
Wickford RI.. it's all about the Pink, Green, Teal colored Historic…
One thing you could almost call notorious are the colors in Wickford RI.. it's all about the pink, green, teal colored historic houses It's better than a rainbow of color to inspire the artist, traveler as well as home buyer… it's the… more
North Pole or
Well with a snow run streak in Rhode Island these last few weeks it is feeling like the RI North Pole It definitely does not feel like my homey North Kingstown RI enclave for living or working in real estate. Not pouting or complaining but I… more
North Kingstown RI 02852 REO and Bank Owned Homes for Sale
Currently there are five (5) REO or Bank owned homes for sale in North Kingstown RI 02852 as compared to the 160 homes not in distress and on the North Kingstown real estate market right now. Bank owned/REO (homes that the bank has foreclosed on)… more
Winter Activities in RI to Enjoy on the Weekend!
Oh baby it's cold outside so what can you do besides the movies and shopping… well here are some winter activities in RI to enjoy on the weekend! Make no mistake you need to get out of the house to do them but it is well worth the boot and mitten… more
Ruffle People's Feathers why Don't You?!
Ruffle People's Feathers why Don't You?! Ruffle people's feathers I am not talking about the show of peacock feathers mind you but honest to goodness opinions. You know I am told we are Realtors and should not be putting a bad spin on anything… more
Cranston RI Condo for Sale-165 Wentworth Ave. Unit 1 W Cranston RI…
Cranston Condo for Sale - 165 Wentworth Ave. Unit 1W - Cranston RI 02920 and exceptionally priced at $115, 000. A first floor unit and all rooms on one floor makes this far better than apartment living! High ceilings, large airy & bright… more
Wickford RI Homes for Sale - all about Insurance and more
When I take buyers out along the Wickford RI waterfront to view the Wickford Village RI homes for sale the inevitable question comes up about insurance. Being so close to the waterfront of Wickford Harbor or on the waterfront in historic Wickford… more