Question: My husband and I are retired. We are contemplating buying a condominium unit, but we are apprehensive about automatically becoming members of the condominium association and committing ourselves to obeying what are called the association’s declaration of covenants and restrictions and bylaws. What is it that we must know and understand?
Answer: Before signing a sales agreement to buy a condominium, you should inquire about the amount of reserve funds the unit owners’ association has: The amount of the association’s reserve funds is reflective of its management. The reserve funds are the measuring stick.
Reserve funds
The Pennsylvania Uniform Condemnation Act mandates that the association’s bylaws contain provisions for the establishment of reserves to provide maintenance, improvements, replacements, working capital, bad debts, depreciation, obsolescence and similar purposes as are desirable. Provisions for reserves for capital expenditures are required.
Philip B. Korb in Pennsylvania Condominiums Model Forms & Commentary, Second Edition, 2014, suggests this language:
“The executive board must build up and maintain reasonable reserves for working capital, operations, contingencies and replacements. Extraordinary expenditures not originally included in the annual budget that may become necessary during the year may be charged first against such reserves. If the reserves are deemed to be inadequate for any reason, including nonpayment of any unit owner’s assessments, the executive board may at any time levy further assessments for general common expenses and/or limited common expenses, which will be assessed against the unit owners either according to their respective percentage interests with regard to general common expenses or in accordance with allocable shares of limited common expenses with regard to limited common (whichever is appropriate), and will be payable as a special assessment, in whatever manner the executive board may determine.”
In a condominium association, for example, a road might never have been intended to be taken over by the municipality. Thus, there must be adequate reserves for reasonable maintenance of the road.
Bottom line, before signing a sales agreement to buy a condominium, you owe it to yourselves to find out the amount of the association’s reserve funds.
Declaration of covenants and restrictions
Take a good look at the association’s document called declaration of covenants and restrictions.
The declaration describes your anticipated unit boundaries, the common elements, the limited common elements and the responsibilities of the unit owners for the maintenance of the various classes of property in the condominium.
Most important, the declaration imposes various covenants and use restrictions on the units and other portions of the condominium.
Note that the declaration contains restrictions governing matters such as motor vehicles, pets, outdoor activities and installations, and the appearance of units.
As to “automobiles and other vehicles,” Korb suggests this language be part of the declaration:
“Automobiles and all other vehicles may be parked only in in areas designated for parking within the common elements. No unit owner may park or allow to be parked anywhere on the property more than (a certain number of) automobiles per unit, owned or leased by the unit owner or members of his or her household, guests, invitees or permittees. No unit owner may leave any nonoperating vehicle or a vehicle not licensed to be operated anywhere on the property. No unit owner may park or permit to be parked anywhere on the property any of the following: snowmobiles, recreation vehicles, trailers, boat trailers, boats, jet skis, all-terrain vehicles, golf carts, tractor-trailers, motorcycles, motorbikes or any other vehicle that does not fit in a standard parking space on the property. No unit owner may operate, or permit to be operated on the property, any motor vehicles other than automobiles, including by way of illustration only, all-terrain vehicles, motor scooters, snowmobiles, regardless of whether such motor scooters are licensed or not. No unit owner may conduct repairs or restorations of any motor vehicle, boat trailer, aircraft, or other vehicle or trailer upon any portion of the property.”
Your task is to familiarize yourselves with the declaration, be certain you can live with its provisions, and determine whether the executive board is, in fact, enforcing them.
— — —
In next week's column, read more about condominium associations and their bylaws.
To ask a legal question, email AskAttyBernie@timesonline.com or send mail to Ask Attorney Bernie, c/o Beaver County Times, 400 Fair Ave., Beaver, PA 15009.