Last Condo Standing

 

For those who think of Outback Steakhouse when they hear the term, blooming onion, behold the actual item to the left. This is one of several spring onions from Publix that I plugged into a pot on my porch two years ago. They have prospered and produced a steady stream of green onion shoots over those years and this one decided this was the year to flower. Onions are biennial plants that typically flower in their second year. Most are harvested at the end of the first year after they've produced the onion bulb in the ground and never get the chance to bloom. For those who like to grow stuff, I heartily recommend cutting off a few root ends from grocery store green onions and dropping them into the ground or a flower pot. Mine have been productive and seem to prosper on neglect all while producing tasty green shoots that I cut off with scissors with no apparent negative impact to the plants.           

Our inventory seems to have reached a short-term sustainable level. The drastically depleted number of properties for sale has slowed sales enough that the stream of new listings is replacing solds at a nearly matching rate, at least for now. For condos and townhomes in Cocoa Beach and Cape Canaveral the magic number is between 50 and 60 total units. Single family home inventory has been stuck in a range between 15 and 20 total homes for sale since beginning of the year. That is a four week supply of homes at the current sales rate. Condo inventory this morning is 53 existing units for sale in our two cities. We have closed 91 units since April 1. At that rate, we have a 16 day supply of condos left. Uncharted territory although we have been steadily headed this way for years. I never dreamed I'd see the day that we had such little supply but here we are. I'd love to hear readers' thoughts on how they think this might play out. It doesn't seem sustainable but we've been imbalanced for a long time now with little effect other than rising prices and bidding wars. When we get down to the last property for sale, that multiple offer situation should be interesting. 

Speaking of multiple offers, which we're seeing a lot of recently, maybe agents will start asking for sealed bids when there are multiple offers and live stream the bid openings to all participants. I'd watch a TV show that did this. I remember listing agents asking for sealed offers on a few popular listings in 2005-2006 that had received multiple offers so it isn't a new thing. I would prefer that to the way many agents handle multiple offers. After having lost in a multiple offer scenario buyers are often suspicious that details of their offer were revealed to the winning bidder or that there weren't actually any other offers to start with. Sharing of competing offer details is sometimes done with the seller's permission but a listing agent lying about a competing offer is extremely rare. Anyone offering on a nice new listing should expect there to be other offers and prepare for how they want to respond to the call for best and highest. Twice in my career I've had buyers tell me after losing in a multiple offer situation that they would have paid more. It is foolish to think you'll get a chance to improve your offer after delivering your "best and highest". Keep in mind should you find yourself asked to make your best and highest offer that there is a better than 50/50 chance that the other buyer will be offering cash. For best chances of success, keep your offer simple and as attractive as possible.

"It's easier to fool people than it is to convince them they've been fooled." __paraphrased Mark Twain

Objection Your Honor

This repost of an article I wrote in 2015 was prompted by a couple of recent conversations about condo boards overstepping their authority. There are a few condo boards in our area that are notorious for making the owners' lives miserable and they often overreach in their zeal to annoy. Enjoy.

Has Your Condo Board Gone Rogue?

Here we go again. Condominium boards exceeding their authority (or shirking their duty) is so common that I am no longer surprised when I hear crazy stories about a Board, officer or management company making up procedures to suit their own agenda. Without enforceable guidelines it would be next to impossible for a group of people to fairly share ownership and maintain reasonable living conditions in a property. If that group doesn't understand the laws and guidelines they are at the mercy of the overreach or indifference of the Board.

The State of Florida was kind enough to enact a long and detailed Statute (The Condominium Act) that spells out how condominiums shall be formed and run. You can read the entire Statute here. Each individual condominium also has a Declaration and By Laws detailing governance and use restrictions for that condominium. Condo owners are advised to read and understand the Declaration and By Laws for their association. Note that the separate Rules and Regs issued by your Board may not be legal nor enforceable.

With all the legalese of the governing documents, it can be confusing as to exactly what rights owners and Boards have. Not surprisingly, Boards and management companies routinely act in ways that violate the Act. Often unintentionally, sometimes not.

I saw a Cocoa Beach condo board run a sales contract through first right of refusal when no first right existed. In that case it was a misunderstanding not an illegal conspiracy. I have seen a management company insist on offering a contract out for first right contrary to the procedure in the Declaration. That case was also a misinterpretation not intentional misbehavior.

Now on to outright conspiracies. There is a condo in Cape Canaveral that has for years tried to keep sales contracts secret from owners who have first right of refusal. This has gone on with cooperation from the management company. They recently stepped up their illegal activities and skipped the first right process altogether in clear violation of their Declaration. Another Cocoa Beach oceanfront condo added an illegal use restriction to it's Rules and Regs and backdated the document to make it appear as if it always existed. They should have made sure there were no former copies still in existence. Busted. 

The incident that prompted this post occurred at an otherwise beautiful Cocoa Beach condo that just happens to have a particularly nasty management company. The management company has been a fairly constant source of grief for owners and tenants and I have heard many stories over the years. The Board tolerates the manager's actions and possibly supports it. I was sent a copy of one letter from the manager threatening to fine an owner. The threat was not illegal, but the manager did not have the authority to levy a fine. That is a clear violation of the procedure spelled out in the Act. Hopefully, the Board will follow the law if they start following through on the manager's frequent threats of fines. If not, and no one stands up to them, the grief will continue.

The Condominium Act is very clear about fining procedure. Neither the management company nor the Board can fine an owner or a tenant without first issuing a 14 day notice of a hearing before a committee of owners who are NOT Board members nor residents of a Board member's household. The committee can either confirm or reject the fine. The Board can't levy a fine without following this procedure and receiving the committee's confirmation. If you receive notice of a fine absent the procedure, inform the Board and manager that they have violated procedure and do not pay it until procedure has been followed. Your non-Board committee members may stand up to a bullying Board or manager and reject the fine. Not all fines are undeserved nor are all Boards and managers bullies. The procedure is there to give some check and balance to the fining process. Use the privilege wisely should the chance arise. As always, knowledge is power.

From the Florida Condominium Act Chapter 718.303 (b):
A fine or suspension levied by the board of administration may not be imposed unless the board first provides at least 14 days’ written notice and an opportunity for a hearing to the unit owner and, if applicable, its occupant, licensee, or invitee. The hearing must be held before a committee of other unit owners who are neither board members nor persons residing in a board member’s household. The role of the committee is limited to determining whether to confirm or reject the fine or suspension levied by the board. If the committee does not agree, the fine or suspension may not be imposed.

"If you smell something, say something."  __Jon Stewart