Archive for July, 2010

Every Townhouse or Condominium community in Basking Ridge and everywhere else has monthly fees that are paid to an association or a property management company.  These fees vary widely throughout each condominum and townhouse community.  Sometimes these fees are based on a particular model, number of bedrooms,  square footage of the townhouse or condominium, number of shares if  a co-op , or they may be the same for everyone.

These monthly fees cover a wide variety of services and maintenance.  In most cases – yes, there are exceptions – it covers everything that needs maintenance on the exterior of the townhouse or condominium. Trash and snow removal is almost always included in the monthly maintenance fee.  Maintenance of the exterior of the building, maintenance of the common areas and landscaping are also included.  If you live in a townhouse community that is well established, has a high density or lots of sloping land the maintenance fees may be higher because it takes more time to mow the lawn, shovel the snow off the walkways and or weed, mulch and maintain the landscaping.  This versus a wide open space that the landscape company can just get on one of those wide mowers and be done in 10 minutes.  The Maple Run Townhouse community in Basking Ridge is one example of that.  Lots of nice level open grass to mow!  Then if you look at  The Ridge townhouse community there are very mature and specimen plantings that need a little extra time to hand mow or shovel.  Number of units in the community can and will affect the monthly fee also.  The Ridge townhouse community for example only has a little over 100 units.  Compared to various communities and sections in The Hills of Basking Ridge which have hundreds of units.

The exterior of the buildings are also maintained.  This includes the roofs, siding and in some cases maintenance of the decks and or patios. In most cases however, windows and doors are not included.  the Amherst Mews Townhouses even have their mailboxes included!  Townhouse owners may be limited as to what they can leave outside or plant.  Usually the townhouse association doesn’t mind if you plant a few flowers along your side of your unit. Planting or removing a tree however is a different thing and you must seek permission of the association.

In some cases your water will also be included in your monthly fee.  The Ridge Condominium complex includes the water in the fee whereas Lord Stirling Village townhouses do not.  Various amenities can affect your monthly fee.  If you have a pool, tennis courts, playground, etc.  All these things need maintenance as well.

If you live in The Hills you pay a monthly sewer charge to EDC of around $59 per month.  No exceptions.  Other townhouse communities get billed a flat sewer fee semi annually like singe family homes.  Currently, in Basking Ridge  that fee is $160 semi annually.

There are townhouse communities that are fee simple where the owner must maintain some or all of the exterior of their property.  The Patriot Hill townhouse community in Basking Ridge is one of them.  You must shovel your own driveway there so if you are not going to be home during the winter make sure you have this taken care of.  In the Spring Ridge Condominium community there is a section that has many duplexes and several single family homes that are fee simple.  The fee is drastically reduced – currently under $50 per month – but you not only maintain your grounds you maintain the exterior siding and the roofs.  Better like your neighbor because if your side of the roof needs replacing you should really do the whole building.  You wouldn’t want two different colors on the same building!  And, you could have one side that is well landscaped on the exterior and the other side isn’t.  This could significantly affect resale of the townhouse or duplex.

Every townhouse and condominium community is subject to special assessments for capital improvements.  That’s another blog, another day.  And when buying in any Townhouse or condominium community in Basking Ridge the buyer will pay a one time, non refundable, contribution fee for capital reserves to the management company.  This fee is usually a factor based on the monthly fee and is usually the same for all the units in the townhouse community.

If you would like more information about any townhouse or condominium community in Basking Ridge, click here.

Whoa!  Here’s a touchy situation.  My opinion is “absolutely not”. Here’s why. ( Just remember there are always exceptions!)

If a seller lets the buyer move in prior to the closing so many things can and do go wrong.  I just read where the sellers gave the buyers permission to paint a vacant house prior to closing.  Although the painters covered the hardwood floors to keep them clean, one of the drop cloths was covering a floor furnace.  The furnace came on during the night and — you guessed it — the house burned down!

In another situation a seller agreed to let the buyers take occupancy in return for releasing part of the deposit to the seller.  Once inside the sellers refused to close and the buyers had to file a lawsuit.  This can take months and even years.

I had another situation where the seller let the buyers take occupancy without telling their realtor or attorney. Turns out this ‘seller’  didn’t even own the house – her ex husband did and he didn’t agree to the sale!  Very messy.

In my opinion if the buyer needs a place to stay until the property closes let them stay with a relative, hotel or go on a vacation.  Do whatever you need to do to avoid letting them take possession of the property prior to closing.  If a problem arises, a resolution can result in a lengthy and expensive litigation.

There ARE however exceptions and I have had several very successful situations where the buyer has taken occupancy prior to closing. 

First, get the attorneys involved.  If they agree, have the attorneys draw up an agreement to be signed by both parties.  Similar to a lease agreement and there should be monetary consideration to the seller as well.

There is something called a “hold harmless” agreement.  The buyers do a final walk through of the property agreeing that all is in place for the closing.  Sellers should take extensive photos and/or a video of the property and its condition so that there is no dispute abut the condition of the property if the buyer fails to close.  The hold harmless agreement basically releases the seller of all future responsibilities for the property.

Make sure the buyer, now a tenant, gets the proper insurance.  The seller should check with their insurance company as well to inform them of this situation.  This is now basically a short term rental.

The bottom line is I would not want any of my clients to do what I wouldn’t do.  Would I let the seller take possession of MY home prior to closing.  Absolutely not.

I have personally been on over 1,200 home inspections throughout my real estate career. I have learned so much and it never ceases to amaze me how  much you can learn from this experience.  I am still learning!  It is critical that every buyer have a home inspection whenever they buy a house or townhouse.  It is an education into the workings of the mechanicals, plumbing and electric of the home.  A buyer buys a home assuming it is in good working order.  If the home inspection reveals that it is not, then it is up to the seller and buyer to address any repair issues.  Make sure you use a licensed home inspector whenever you have a homeinspection on a home or townhome. The inspector should test the HVAC systems, plumbing and electrical.  The home isnpection is also meant to inform the buyer about normal maintenance items that should be addressed in the future.  Like caulking around tub and tile work; remembering to turn off the water to the washer and dryer at the main valve (I never remember this); or even how to unclog a garbage disposal.  I learned that one from a home inspection last week!  What a buyer should NOT do however is expect the seller to bring the home up to today’s standards or codes.  If the code has changed since the home was built and there is no hazardous or safety issue then the buyer should tuck that issue in the back of their minds in case that issue should need repair or maintenance in the future.  One such issue I am having with 2 of my townhouse listings is the distance that the microwave is above the stove.  The home inspector says it should be a minimum of 18 inches.  Mine are 16 and 17 inches respectively.  Both buyers want the seller to move up the microwave!  The code for microwave clearance in 1984 was different than today.  Both these microwaves vent to the outside and that was how they were originally installed and the townhouse received approval from the town back then.  The buyers should not expect the seller to get in a qualified kitchen installer to redirect the micorwave.  Another issue I am having:  One of my listings had a jetted tub in the master bath without an access panel to the motor.  Today when jetted tubs are installed it is code to install an access panel to the motor.  That was not the case in 1984 yet the buyer wanted an access panel installed for the jetted tub. That was not the code then so the buyer should accept that.  However, if they replace the jetted tub in the future, they will need to put in an access panel to the motor in order to be properly approved by the town.  Oh, and if you have a window above the tub — today it must be tempered glass.  When the townhouse was built that was not the code.  Don’t expect the seller to replace it.  I wrote another blog about home warranties a while ago.  Older homes should offer it to the buyer.  However if say the  furnace is original and it is working and that was disclosed to the buyer on the Sellers Disclosure, a buyer should not expect the seller to replace it if the home inspector says it is at the end of its life and should be replaced in the near future.  Because this was disclosed, the buyer should have taken this into consideration with their original offering price.

I could go on and on with my experiences and I realize it is still a buyer’s market out there but I wish the buyers would be more reasonable.  They usually negotiate a pretty good price for themselves yet when it comes to the home inspection issues they want every minor maintenance issue repaired or a hefty credit that far exceeds the actual cost of the repair items.  Sellers are willing to resolve these issues fairly in most cases but there are times when a deal falls apart because the buyer gets greedy and the seller finally just says no.

If everyone just plays fair and realizes they are not buying a new townhouse and they can’t expect everything to be perfect then everyone will live happily ever after!