Assessments Reassessed!!!

Earlier this month, I represented a Seller in a Boston condominium. Every transaction has its issues, and the issue in this matter was the fact that the Condominium, which had more than sixty (60) units, was undergoing renovation, and there were going to be Special Assessments to pay for same. The Seller and Buyer spent a substantial amount of time and effort trying to figure out an equitable way to split the responsibility for same. I normally take the position that if the subject of the Special Assessment is looking backward [repairing a rotted roof, foundation cracks or brick pointing], it is clearly the Seller’s responsibility. If the subject is a new feature for the Condominium [recreation room, pool] the Buyer should pay. There is never a clear path, but, generally, if both the Seller and Buyer are motivated, we can reach agreement.

Once I put this matter to bed, it occurred to me that Assessments, which are often viewed with horror by both Buyers and Sellers, are really a positive sign of good Condominium governance, and not something to avoid. As I started to think about Condominiums which I have owned, or assisted people in buying or selling, I realized that not having Assessments, and addressing either deferred maintenance or improving the Condominium complex, is, in fact, a negative factor, because when problems do arise, they are that much more significant since they have been ignored no long. For example, the Condominium where I live has not changed its monthly fee, or had a Special Assessment, for the more than the twelve (12) years I have lived there. I do not view this as a good thing: I view it as sloth and indolence on the part of the people who run the Condominium.

The bottom line is that there is a lot of deferred maintenance in all homes, but especially in Condominiums. If you live in a Condominium, where management is up-front and pro-active in keeping the systems and components in good shape, chances are that there will never be a major problem, because the smaller problems are being addressed on a continuing basis. I now also believe that “self-management” is really a code word for “cheap”, and that a self-managed condominium is not as valuable as one which has professional management and experienced operatives dealing with normal, and extraordinary, issues which arise. The more I see of self-management, the more I see megalomania. That results because like our political system, competent people are not willing to serve as Trustees and condominium officers, so people without experience or framework assume power, often leading to poor decisions and a Condominium with no prospects of having the value thereof increase. The only thing these individuals possess is plenty of spare time, and the old adage “if you want to get something done, ask a busy person” very often applies.

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