Anyone Have Experience Buying A Condo In The U.S.?

[JerryO]

I'm in the process of buying a condo in the U.S. Is there anyone in Pattaya that is familiar with reading all the legal contracts and documents, disclosures, etc., to make sure that it all looks good? if you're a former realtor, lawyer or just really familiar with buying property, I'd be happy to take you to a nice lunch in Pattaya, and go over these documents to get another opinion. Please message me if interested. Thanks!

[Jingthing]

Good luck to you. I've bought and sold condos in the US but used brokers for both transactions. The closing processes can vary radically from state to state. On buying in a condo in Thailand, I was amazed at the simplicity. It was easier than buying a car in the US. I admire your timing; now seems like a very good time to pick up some US real estate at distressed prices.

From my limited experience, one thing you should pay attention to is the budget of the condo association. Are they budgeting for future major expenses and also unexpected emergencies, such as a new roof every 10 years, that kind of thing? If not, expect some nasty surprises down the line in the form of special assessments, one time funding events that could cost you many thousands of dollars each time (happened to me twice).

Edited December 20, 2010 by Jingthing

[gk10002000]

Good luck to you. I've bought and sold condos in the US but used brokers for both transactions. The closing processes can vary radically from state to state. On buying in a condo in Thailand, I was amazed at the simplicity. It was easier than buying a car in the US. I admire your timing; now seems like a very good time to pick up some US real estate at distressed prices.

From my limited experience, one thing you should pay attention to is the budget of the condo association. Are they budgeting for future major expenses and also unexpected emergencies, such as a new roof every 10 years, that kind of thing? If not, expect some nasty surprises down the line in the form of special assessments, one time funding events that could cost you many thousands of dollars each time (happened to me twice).

Let me relay my current experience of "owning" a condo. I put that in quotes because I kind of rent/own but am intimately familiar with what the owner of my unit has to deal with.

1. Condo fees. $$ How much? Make sure you know what they include, Pool, Water, sewage, basic cable etc.

2. Condo board. How are their finances? Ours claimed bankruptcy and would not pay for hurricane storm damage when it happened. OK, So where was all the money all the people had been paying to the condo fee for all the years? Their accounting was pretty bad. Very expensive and time consuming to sue.

3. Modifications to the condo. What can you do? What approval do you need? Bathroom tiles? rugs? Nothing? What can you do with/without their permission? Outdoor Awnings? Outdoor patio modifications? We have a condo nazi and had to tear up a tiny 5 by 2 foot pad of concrete we had poured. Meanwhile, two units down, a guy was able to build a wall, a fence, etc.

4. Transfer issues. Does the Condo board have to approve renters and buyers of your unit should you want to sell? Sounds like a minor point, but if you take in a tenant or a room mate, it could be an issue.

5. Assigned or guaranteed parking? One spot per unit? Usually, people abuse it and have cars in the "guest" parking area. Our neighbor got mad once becaus I parked my car in the guest area, and he complained he was trying to run a business and needed all the spots to park the used car business he was running! Another time in an older condo I had, people would park in my space, the board agreed it could be towed, but private tow companies would not touch the car because it was on private land.

In short, I am negative on Condos. FYI I live in the Palm Beach Florida area, but will be un-renting soon after I purchase my own little dog shack.

[JerryO]

Those are all very valid points, thanks. I was more worried about the financial health of the HOA. If too many people default, what happens. And i've gone over the financial statements, but it's not clear to me if it's healthy or not healthy. I've heard stores that even in deluxe condos, if there are too many foreclosures that don't pay the HOA fees, the pool can be closed, no services, etc. It can be scary!

[barryofthailand]

The three previous posts are right on. The main points are the financial health of the HOA. I lived in Los Angeles, and bought a condo in the San Fernando valley where they had just had a major Earthquake. I got an excellent price because of this, but had to make sure that all the earthquake repairs would be done properly. I was lucky, as I had previous HOA experience, and suggested they hire a private adjuster. We got over half a million dollars from State Farm, and all the condos were able to get top of the line garage doors and new electric motors. We also were able to fund the HOA at 120 %. So the main thing to look for is are their any repairs that need to be done, and what % is the HOA funded at.

Barry

[Rimmer]

This is all very interesting but it is hardly related to Pattaya.

The OP is looking for someone IN Pattaya to go over some documents

[Rimmer]

One post removed from view, Off topic discussion of moderation.

This is the Pattaya forum and discussion of US condo laws have no place here.

[sfokevin]

One thing to note after sale - Keep a copy of the wire transfer in documentation (This proves you brought the money into Thailand), Land Department Sale Contract and Land Department Deed - These will ALL be required if you ever sale the condo and want a bank to wire out to repatriate the funds out of Thailand. I would suggest scanning them and emailing them to yourself as a way to store them... In one other thing get your name on the Blue Book - This can possible reduce your withholding tax when you sell...