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DISPATCHES FROM THE FRONT: MIAMI LUXURY CONDO BOARD & DEVELOPER GET INTO $1.5M VALET PARKING SQUABBLE

Eunji Kim — Thu, 27 Aug 2015 12:45:28 +0000

$1.5 million valet parking dispute pits Miami luxury condo board against developer

BY NICHOLAS NEHAMAS

nnehamas@MiamiHerald.com

In Miami’s surging real estate market, even the price of parking has hit overdrive.

Residents of a downtown luxury condo have been told they must cough up $1.5 million for the 50 parking spots they’ve used for valet parking — for free — since the building opened in 2008.

That’s $30,000 per spot, or $196 per square foot of parking, assuming the spaces are the minimum size mandated by city code. The average home in Miami-Dade County sells for $175 per square foot, according to real estate website Trulia.

Unit owners at the building, a 40-story tower on Biscayne Boulevard at Third Street called Met One, aren’t happy about telling Mom and Dad to park somewhere else if they want to come visit.

“Needless to say the board and unit owners expected that upon purchasing their units they would forever and always have the ability to have valet parking,” said Eric Glazer, an attorney for the condo association.

Developer MDM Group has already turned the building, which has 447 units, over to the association. But MDM still owns 50 guest parking spaces in the building’s garage. If buying the spots strikes residents as a bad deal, MDM principals Ricardo Glas and Luis Pulenta have also offered to rent them out for a total of $10,000 per month.

But neither option appeals to the condo association.

“We do not have these funds in the budget,” Met One’s property manager told unit owners in an email last week. “The only solution would be a special assessment, which would need to be voted on. … That process would last several months and would not be fair to the property residents — assuming that the vote could even be obtained.”

Has your association ever faced a similar scenario with a developer? Did you know who owned the parking in your building BEFORE you bought? We would love to hear your story! Email us at info@associationevaluation.com

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DISPATCHES FROM THE FRONT: REAL ESTATE AGENTS, HOAs & LAWSUITS, OH MY!

Eunji Kim — Thu, 30 Jul 2015 13:55:24 +0000

Las Vegas Review-Journal: Real estate agents, HOAs battle over liens

By Jennifer Robison

July 25, 2015

It’s a Nevada Supreme Court decision that didn’t resolve much.

The court’s September ruling in SFR Investments Pool 1 LLC v. U.S. Bank gave homeowner associations the right to wipe out entire mortgages through foreclosures for late dues. But it also launched a legislative effort to reverse the right to what’s called a super-priority lien.

Today, the battle continues between real estate agents, who say the rules put banks on the brink of a local lending boycott, and HOAs, who say the system is finally working the way it should.

Both sides have taken to courts and to Carson City to make the case for additional change. The results could have long-term implications for Southern Nevada’s housing market.

One thing the legal challenges and legislative changes have yet to accomplish is to seal the bitter division between the two sides.

Question of fairness

It’s “rank unfairness” to let an HOA with a claim of $3,000 or $4,000 in late dues and fees foreclose on a lender and wipe out a $300,000 first mortgage, said Keith Lynam, president of the Greater Las Vegas Association of Realtors.

Allowing super priority also undermines the local real estate market.

“Lenders have made it clear that extinguishment of noteholders needs to be addressed. If it’s not, it will be addressed for us,” Lynam said. “They have made it clear they will not lend here.”

Association managers counter that the real unfairness happens when banks let delinquent homes languish, HOA dues unpaid. Read more:

http://www.reviewjournal.com/business/real-estate-agents-hoas-battle-over-liens

What are your feelings about this ruling? Is it “fair” for HOAs – or does it jeopardize the lending process?

We would love to hear your opinions. Please email us at info@associationevaluation.com

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BROKER BEWARE: 8 EASY STEPS TO MANAGE RISK

Eunji Kim — Thu, 23 Jul 2015 14:45:24 +0000

Real estate transactions can be fraught with risk.

By following these eight simple steps, you can significantly reduce your liability, manage the risk of potential litigation and make your clients happier.

Review fair housing rules and treat all prospects, customers and clients honestly, fairly and equally.

Keep meticulous records of all communication throughout your transaction. If you are using a paperless transaction management system, scan and upload all of your notes, emails and correspondence for your transactions.

Use email to confirm any verbal conversations or agreements. Also use email as proof of delivery copies of contracts and addenda. If your clients don’t use email, mail copies of all the contracts and documents they sign via certified or registered mail.

Practice the rule of three: always recommend at least THREE vendors when suggesting service providers. This includes contractors, attorneys, lenders, home inspectors, home warranty companies, and moving companies.

Always encourage your clients to obtain a home inspection and a PARScore (if they are purchasing a condominium or unit in a HOA). Get a written waiver should the buyer choose to pass on conducting their due diligence.

Educate and set the proper expectations with your clients and customers.

Always conduct a qualification interview with all clients at first contact.
Explain the entire sales process from beginning to end.
Review how earnest money is handled and what happens if a sale is canceled.
Explain how association-governed communities work–and suggest a PARScore to assess the health of the project.

Be organized. Use a checklist to stay on top of all the tasks in a real estate transaction. Include any due diligence and contingency deadlines.
Communicate. Communicate. Communicate. Do it often and with all parties involved in the transaction! Return phone calls and emails promptly. And always make sure to follow up after the sale. Happy clients are the best source of future referrals.

Do you have any other tips for managing risk? Let us know! Email us at info@associationevaluation.com. We love hearing from you!

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