What is a Condo Corporation?
A Condo Corporation is a real estate entity formed by a real estate investor called a Condo Manager. The primary purpose of a Condo Corporation is to protect the interest of investors in a particular market by utilizing their purchasing power to exercise control over, and/or manage, the financing involved in the sale of condominiums (concentrated in single family homes). In order to maintain control of this important part of real estate investing and thus prevent investors from being taken advantage of, most Condo Corporations has an appointed Board of Directors who exercise power and authority over the policies and operations of the corporation.
Who Are the Board of Directors?
The officers of a corporation are often the same people that are listed on the Articles of Organization (or Articles of Warranty), which also list the officers of the corporation. There are also a number of standing committees, including the Board of Directors, the Office of Public Trust and the Charitable Trust. This standing committee is responsible for approving or rejecting gifts, reports, and financial statements which are then presented to the general public. They also act as a liaison between the board and the general public.
Why Would I Want To Be Involved With a Condo Corporation?
There are many benefits to be had by becoming involved with a condo corporation. A condo corporation is an excellent way to purchase real estate at a reasonable cost since the corporation is able to purchase real estate for a lower price than a separate sale at market value. Also, since a majority of the funds in a condo corporation are held by the board members, investors are guaranteed regular meetings and regular updates on the status of the company. One drawback is that there usually aren’t any shareholders’ meetings since all of the work is done by the officers of the corporation.
What Are Some Common Problems With Condo Corporations?
One problem is that there can be conflicts of interest among the board of directors. The condo corporation must have a written code of conduct and it is important that the condo corporation have a set term of office, or Board of Director’s Office, which ensures that all meetings are held on time and that they always follow the same agenda. The term of office must also be set and be maintained. A second problem is that the condo corporation must have a board of management which must be completely independent and also have some type of a dispute resolution process such as a volunteer board chairperson who takes on the role of a mediator when there are problems or questions regarding the property.
So Why Are Condo Corporations a Smart Move?
Now, that you know what a condo corporation is you can better understand why buying real estate with a condo corporation can be such a smart move. The first reason is because you do not have to worry about dealing with a number of different individuals or companies which can become confusing over time. The other reason is because everything is done at the same time so it will be easier for you to keep up on the ongoing proceedings. The last reason is because all of the decisions made are made at the same time, so it won’t be hard to see where all the conflicts are coming from and to take care of them right away.
Conclusion
If you are ready to buy some real estate with a condo corporation or you are looking at condos for sale, then you will want to check out some information regarding how to buy a condo with a condo corporation. There are some great real estate investment opportunities available with condos and if you use your head a little you can get an amazing deal on some amazing real estate. You will want to do a little research on your own and find out what the rules are in your area regarding condo corporations. Also, be sure to do your own research on the board of directors of your particular condo corporation. This way if there are any problems which may arise you can take care of them at once without much trouble. As you can see, there are some great benefits to buying real estate with a condo corporation and you should definitely consider this option if you are looking for something new to invest in.