Another Big Danger Of HOA Life

Suppose you’re an older couple planning on the peaceful retirement life in a maintenance-free neighborhood. You take your entire nest egg and pay off the mortgage. Your new townhome, condo or single family residence is now yours….forever.

Oopsie! You learn that a developer wants to tear the whole thing down and build something new. You don’t want to move from your retirement home, but the developer gets a ‘majority’ of the residents to take his low ball offer to clear out. Not you. You want him to pay you fair market value. But because a ‘majority’ of your neighbors have moved out, what’s your fair market value now? It’s a heck-of-a-low lower than the others were paid. In fact, your quarter million dollar retirement home is worth ten cents on the dollar. Now the developer can get ¬†you tossed out by the courts and pay you nothing.

Think it can’t happen?

(yes, it can happen…it happens all over)

 

 

1 thought on “Another Big Danger Of HOA Life

  1. Deborah Goonan

    So the “overwhelming majority” of owners are interested in selling. But what about the significant minority?

    And I wonder about the majority that want to sell. How long have they owned condos? Do they own more than one condo and rent them out to tenants?

    A majority in an Association refers to the voting interests, not to actual people. A few people can hold an “overwhelming majority” of the voting interests!

    Reply

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