Quote:
Originally Posted by Badger 2006
So built into your maintenance fees is a number ($$) to replace roofs in your community. You live three for 10 years, then move. Do you loose that roof contribution or does the buyer somehow pay the seller, or association? Please explain how this works.
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Looking at a condo (FS718), roofs, paint and paving are "usually" a Reserve Item. Reserves are not operating budget items. They are kept in a reserve account and can only be spent on those items in the Reserve study. If you live somewhere and pay 14 years into the Reserves for a roof that is replaced the 15th year, you DO NOT get to credit that at the closing.Reserve studies are updated each year, with a physical detailed study done every three years (for condos). The TVI (Total Voting Interest can vote (This will change next year) not to have reserve contributions. This leads to Special Assessments for those items as they need to be changed. Most people would like to make 180 small payments towards the replacement of a 15 year roof, vs one large sum via a Special Assessment. There is a benefit to Special Assessments, many can be write offs when you sell. I keep binders of S.A.'s for all associations I handle and provide the info to the attorney or Accountant when an owner sells.