NewsMV
A prospective homebuyer prepared to close on a dream property only to find the condominium association held just 1% in cash reserves.
The discovery highlights a critical risk in real estate transactions where buyers cannot choose their homeowners association.
The setup for the buyer now involves navigating a financial structure that may not support major repairs or special assessments. The core issue is the lack of liquidity within the association.
With only 1% of funds available, the HOA has minimal cushion for unexpected maintenance or capital improvements.
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