Naples Real Estate Law Blog

Buildings that are currently used as apartment complexes could one day be converted into condos. In an apartment complex, each tenant pays rent to the landlord who will maintain the property. In a condo, each resident owns their own unit and may be assessed a fee to maintain a common area. While it may be worth it for a tenant to own the space that he or she is currently renting, that is not always the case.

Those who don't believe that they will be staying for the long-term might want to look for another rental instead. Individuals who can't afford a down payment could also benefit more from renting instead of owning property. The character of a community could change as individuals choose to leave or properties are bought by speculators. Furthermore, the homeowners association that runs the condo may have different rules and policies than the previous landlord did.

Homeowners associations have become more popular in recent decades in Florida and throughout the country. As of 2010, roughly one in five Americans lived in a property controlled by an HOA. To create an HOA, a group of individuals will need to create an LLC or similar entity and come up with the rules that homeowners must follow. Finally, it will be necessary to create bylaws and ways for regulations to be amended in the future.

Any officers elected to the HOA board must be qualified to hold the position that they have been chosen to fulfill. Typically, the association will need to have insurance to protect itself against homeowner lawsuits. Lawsuits may happen for a variety of reasons such as disputes over rules enforcement or potential changes to community bylaws. If a homeowner has a complaint, it must be addressed in a timely manner.

While Florida homeowners are still seeing their homes appreciate in value, home prices are rising at a slower rate. Slower price appreciation may be a sign that a buyer's market is approaching. At a minimum, sellers will have to do more to get the most for their properties. One way to possibly get more for a home is to list it during the spring months. According to Realtor.com, homes listed in April had more views and less competition than other months.

Specifically, homes listed between March 31 and April 6 could sell for an extra $17,000 based on 2019 market data. However, this is not the only time that buyers will pay more for homes. Sellers were able to get up to 9.2% more than their home was worth by selling it in June. This compares to a 6.4% premium in April and a 4% premium in October, December and January.

Homeowners associations (HOAs) serve to benefit the homeowners within its neighborhoods or communities. When homeowners purchase their property, they agree to adhere to the rules of the HOA and pay dues to contribute to the upkeep of their community.

Florida law requires homeowners to comply with the rules of their applicable association. Yet, disagreements between the HOA board and homeowners are not entirely uncommon. When a disagreement cannot reach a resolution amicably, board members may have to consider next steps to enforce a broken covenant.