Blog Posts

Resale Disclosure Packages

Are you selling or buying a home that is part of a community governed by a Condominium or Homeowners Association? If so, you will need a resale disclosure package. Read on to learn more about this important set of documents. Resale disclosure packages are essential in the sale of any property governed by a Homeowner or Condominium Association (“Association”). The seller is legally responsible per the Maryland Condominium and Homeowners Association Acts to provide the package to the potential buyer, and the Association is required to produce it. More specifically, the Acts require the seller to purchase and provide a Resale Disclosure Package to any potential buyer, no later than 15 days prior to closing if the unit is in a Condo Association and 20 days prior to closing for a Homeowners Association. The resale package is a safeguard that protects both the buyer and seller. This crucial package provides all of the documentation buyers will need in order to fully understand their obligations to the Association, and the Association’s responsibilities to them. The resale packet should disclose the Association’s: Financial position. The packet will include a current budget, balance statement, income and expense statements, and disclosure of capital reserves. Amenities. Some Associations offer a unique set of community benefits for residents, such as maintained common areas and may also include amenities such as a clubhouse and pool or play areas, etc. The resale packet introduces the buyer to the value that their Association provides to the community. Pending litigation or actions. The Association is legally responsible to disclose to the buyer any building or health code violations, pending or existing lawsuits against the Association or any special assessments that the Association has passed. Governing documents. The Association’s governing documents outline all community rules and regulations, such as number and type of pets allowed and parking guidelines and restrictions. It also details the community’s architectural guidelines. This informs the new buyer what they can and cannot do with their property. For example, the governing documents will stipulate when the homeowner needs to submit an Architectural Modification Form for approval by the Board of Directors for any exterior changes. Previous Owner Violations. The resale disclosure packet provides information that is specific to the unit being sold. It will reveal if there are any existing exterior violations against the unit or property and detail what needs to be done to correct these violations. The package also outlines the unit’s financial information. This is to ensure that the buyer is buying a property with a clean financial slate and will not be responsible for anything owed to the Association from the previous owner. The resale disclosure package is not static, but must be updated for each new potential owner because: the monthly financial records for both the Association and the unit change on a monthly basis; the Association’s budget may have changed, which means that the unit’s fees would have increased or decreased; the governing documents may have been amended; and the unit may have recently become out of compliance with the Association’s guidelines and the newly reported violation would need to be disclosed. Each resale package must be meticulously prepared typically by the management company on behalf of your homeowner or condominium association. It’s an important service that benefits and protects both the buyer and the seller.

Are You a Snowbird?

Tips for Winterizing Your Home Every year, as autumn’s Technicolor brilliance fades into winter’s gray and white, a great migration occurs: “Snowbirds” head south for the winter! And if you’re among these sun-seeking (mostly) retirees, you know that preparing your home for its “hibernation” takes preparation. Here are some tips for winterizing your home, so that it can weather the cold months ahead and welcome you back again, in the spring. Protect Your Pipes WPM President of Commercial Management and Construction Services, Mike Klein, advises you to completely turn off all water-using systems. This includes the washing machine, dishwasher, hot water tank and ice maker. You may also consider having your water supply completely turned off. If, however, you opt to keep your water supply on, be certain to leave your furnace on so that your home’s plumbing remains relatively warm to keep pipes from freezing and bursting. “I strongly advise residents to set their home’s temperature no lower than 60 degrees,” says Klein. “I have experience with many residents who set the thermostat at 40 or 50 degrees, thinking that they were saving money and energy. Their homes’ pipes ended up getting too cold and burst, causing a great deal of damage.” Other safeguards to consider for your plumbing are a water flow sensor and a low-temperature sensor. These sensors can relay information to a 24-hour alarm center or can even be monitored right on your smart phone. An alarm notifies you about freezing pipes in time to do something about them, before the problem becomes far more costly. Protect Your Home A vacant home is a vulnerable home. Burglars and vandals are keen to the signs that show that no one is home. That’s why it’s key to make sure that your home looks continuously occupied. First, make sure to address obvious signs that the home is vacant: stop all mail and newspaper deliveries. Contract with a snow removal company to clear your sidewalk and driveway whenever it snows. Klein also suggests programming several of your interior house lights with five-position auto-timers, to turn lights on and off throughout the day, giving your home the illusion of continuous residence. A good alarm system and sturdy door dead bolts are also essential for safeguarding an unoccupied home. Before you leave town, be certain to test that all alarm systems are functioning and have been activated. Perform Routine Maintenance Murphy’s Law states that anything that can go wrong, will go wrong. That’s a good adage to remember when preparing to leave your home! Help your home avoid unforeseen issues by proactively performing routine maintenance. Have your furnace inspected and serviced before you leave. Ensure that your electrical system is functioning properly. Remove dead trees or low-hanging branches that are near your home. Clear the gutters and drains of debris to reduce snow and ice build-up. Replace the batteries on all smoke detectors. If you’ve been putting off small house projects, tackle them before you leave for the winter. Prepare for Emergencies No matter how carefully you protect and maintain your home, emergencies may still arise. These can range from catastrophes—such as fires, burst water pipes, flooding, fallen trees and natural weather disasters—to less urgent mishaps. Klein advises homeowners to designate a trusted friend or neighbor, or to hire a property management company, to be your onsite contact. Give them access to your home, so that they can regularly monitor its heating, electrical and water systems. With their help and your careful preparation, your home will be waiting for you, as you left it, when you migrate northward once again.

What Does it Mean to be a Board Member?

So you’ve just been elected to serve on the board of your community association—congratulations! You are about to embark on an exciting journey. You have been entrusted with a lot of responsibility. (To learn more about those responsibilities, take a look at WPM Blog “ Responsibilities of a Board Member ”.) And you have also been given an opportunity make your voice heard and have a valuable impact in your community. It’s a thrilling prospect. So what does it mean to be a board member? Beyond the list of “to-do’s,” what are the key ways that joining your community’s board empower you to make a difference where you live? To answer those questions and more, let’s take a look at the four top goals of community board members: Goal #1: Protecting and enhancing property value The ultimate goal of a community association is to add value to the homeowners’ investment: their property and its surroundings. All of the remaining goals work together to achieve this aim. Goal #2: Providing services and amenities Community services and amenities add value for all members. Homeowners who could never afford on their own an Olympic-sized pool, a private secured gate or acres of lush, green fields and other common areas can take advantage of these amenities, thanks to their community association. And it’s your job to oversee the maintenance and beautification of these amenities. Goal #3: Respecting and hearing the collective rights and interests of homeowners An HOA or community association is the most local form of government. As a board member, you were elected by your peers to serve their interests which, given the fact that you also live in the community you’re representing, might very well mirror your own interests. It is your job to keep an ear to the ground and solicit and welcome feedback from other owners. You are their advocate. Goal #4: Cultivating a sense of community One of the most impactful and rewarding ways that you can make a difference is by fostering a sense of community among homeowners. Neighborhoods in which individual owners experience a deep sense of belonging do a better job keeping existing and attracting new homeowners. When more people choose to stay put, that means that there are fewer vacant homes available for the people clamoring to get in. And as the law of supply and demand dictates, this drives up the prices of available properties. So a sense of community is not just a nice thing to have, it also supports Goal #1: adding value.

This is ‘Raven’s Country!’ So why can’t I have a purple door?

It’s a complaint that many residents have about their homeowners association: the rules regarding their property’s aesthetic appearance are too strict. They complain that HOAs regulate everything from the color of their front door to the length of their grass to the amount of acceptable lawn art. So with all of these rules, what is the advantage of moving into a community with an HOA? According to WPM President of Association Management Barry Yatovitz, there are many advantages. “The benefit of having an HOA maintain the integrity of a community’s original design is that buyers know what to expect, which can lead to a higher future resale value,” Yatovitz explains. “For example, if you compare two communities—one with and the other without an HOA—it is immediately obvious which is which. Communities maintained by an HOA are held to a consistent, high standard.” And that means that bold aesthetic choices—such as the bright purple door—are not allowed. While that’s bad news for our Raven’s fans, it is good news for the overall community. The reason is simple: while you may have good taste and would likely maintain your property perfectly with or without an HOA’s oversight, your neighbor might not. Therefore each HOA creates its own covenants, conditions and restrictions (CC&Rs) that cover: Resident behavior, such as noise ordinances; Architecture, like rules about the height and material of a fence, for example; and Common responsibilities, such as fee schedules. Each restriction is developed not to penalize individuals, but to benefit the greater community. In fact, that’s the broader goal of an HOA: to add value to a community. According to Yatovitz, residents should think of HOAs as far more than a policing agency that nixes your paint color choices. “HOAs enhance the quality of life in a community,” says Yatovitz. “They maintain shared spaces and amenities that individual owners might otherwise be unable to afford. They allow residents to have a stronger voice in governance, as opposed to a local government. And they create a stronger sense of community among residents.” Given all of the value that an HOA brings to a community, maybe that purple door wasn’t so important, after all.

Targeting and Re-Targeting, A Savvy Approach to Internet Marketing

Did you catch the latest episode of Grey’s Anatomy ? If you did, you may have noticed something about the commercials that interrupt the drama: they advertise products most often purchased by women, such as face wash, makeup and laundry detergent. That’s because the marketers know that the audience for Grey’s is predominately female, and the individuals most likely to purchase their products are women. So by placing an ad during Grey’s, they’re reaching their target market. They’re “targeting.” In the internet world, the advent of behavior tracking tools such as Google Analytics is helping apartment marketers get savvier every day with targeting specific demographics like income, interests, geographic focus and more. By narrowing the scope of our marketing efforts, we are more effective at getting our message in front of the people who are most likely to be interested in our product. Targeting is an effective marketing tool because it gets your property noticed. For properties that are not currently ranked at the top of search engine results, targeting allows that property to buy premium search engine placement faster than can be accomplished with organic SEO. Even still, targeting casts a rather wide net. And now there is “re-targeting”. A person visits the State of Maryland Tourism website and then goes to ESPN to check scores and on to Facebook to read their newsfeed. Presto! Ads for Visit Maryland! appear on both of those sites imprinting the message and product. Re-targeting is a cookie-based technology that anonymously follows the target buyer all over the web. It allows us to focus the ad spend on people who have previously visited your website thereby demonstrating an interest. When they visit other websites, your property ad appears on those other sites. While targeting is effective, re-targeting is relentless. It works for lease-up and stabilized properties facing heavy renewals or a vacancy issues alike. And by using third party or Google analytics, we can track the performance of our re-targeting ads. We know which ads drive traffic to our website, how many pages each unique visitor viewed while on our website and for how long. And with lead tracking software, we can even draw a line from initial visit to final sale. So now you can answer, “How did it know?!” -Brent Gratton Director of Multifamily Marketing & Communication

Responsibilities of a Board Member

Members of a community association board face many challenges in the execution of their general responsibilities. It’s a difficult and sometimes thankless job with many complications: The board members themselves are often volunteers, with plenty of other demands on their time Their “bosses” are their friends and neighbors, living in the same community, creating an environment that can be too casual to be productive And sometimes, these friends and neighbors may have their own assumptions of the roles and responsibilities of a board member, pressuring board members to act outside of their area of authority That’s why it’s essential to set clear expectations from the outset, in the association’s governing documents. But governance can seem overwhelming to a new board member. So WPM has developed the following outline of board responsibilities as a guide for community association boards. Responsibility #1: Complying with governing documents and state law It is the board’s responsibility to know, understand and adhere to both the bylaws of the association’s governing documents, as well as the state laws that pertain to association authority. The board must enforce the rules of the governing documents. They often have leeway in determining how fines and other punitive actions are applied. Responsibility #2: Maintaining shared spaces General upkeep, repairs and beautification of common areas are all responsibilities of the board. Successful boards work hard to control the costs of maintaining these spaces through strategic planning. One way that fiscally responsible boards manage cost is by securing multiple bids for maintenance services. They also conduct periodic inspections in order to catch maintenance issues before they become a more expensive problem. And truly savvy boards map out a plan for replacing aging structures without putting unnecessary last-minute strains on the association’s budget. Because this is the board’s most visible area of responsibility, board members often find themselves receiving unsolicited advice and a steady stream of requests pertaining to the upkeep of common areas. It can be tempting to cave to the demands of the loudest voices of the membership. However, a mindful board is careful to prioritize repair and maintenance work based on what is in the best interest of the entire community, and what makes prudent sense from a financial perspective. Responsibility #3: Creating the budget and collecting homeowners’ fees Budgeting is obviously imperative. Board members must meet and review past actual costs and reconcile anticipated expenses with the anticipated income from homeowners’ fees. The board must also be certain to allocate a reasonable cash reserve. These funds are available to cover emergencies, unscheduled repairs and replacements, and revenue lost due to members who fail to pay their obligations. Finally, it is the board’s responsibility to collect homeowners’ fees. Failure of one member to pay negatively affects the entire association. Therefore, boards are permitted to pursue delinquent members via the means outlined in the bylaw provisions (e.g., liens, personal lawsuits which could include garnishing wages or bank accounts), or in court. Responsibility #4: Serving the owners in a fiscally responsible manner according to sound business principles Board members have a fiduciary duty to their homeowners in the same way directors of a publically traded company do to their shareholders. The board has been entrusted with the community’s funds and is expected to manage these funds using sound business judgment. This means that board members will make rational, informed decisions in good faith that provide the maximum benefit to the entire association. Good business judgment is not motivated by personal gain, revenge or other negative intentions. Responsibility #5: Electing members and recording board business The board must keep owners aware of its actions which may include posting meeting minutes. The owners are invited them to participate in the process of electing board members and typically the Board elects their officers. The responsibilities of board membership can seem daunting to a new board member. But making an investment in your community and having an active voice in its success and sustainability offers rewards that more than offset the investment.