by Katherine Peake
After the “Developers, pants first, then shoes” article, I received a phone call from a couple who had bought property in one of the condominium development projects and now had buyer’s regret. You might get the same mailings and emails that I do.
These developments look so appealing. They’re attractive renderings and advertisements of “all-inclusive world-class amenities” like a resort-style pools and splash pads, hot tubs, yoga studios, amphitheaters, pickle ball courts, fire pits and eye-catching common areas. It also sounds urgent, “one day only specials” and most importantly, it sounds affordable, with home sites starting at $159,900. For Fredericksburg, where the median home listing price is almost $800,000, that sounds like a real deal.
So why do they have buyer’s regret? “We were promised we could start building in August”, But sadly, they didn’t get this in writing and the 210 page condominium rules had proved overwhelming. Did you know that they didn’t have a TCEQ waste water permit yet? Well, no, they didn’t. So, if you’re thinking of buying in one of these developments, to avoid buyer’s remorse, start
with a few questions.
ASK: Is this in the City or County? County rules are much more lax, and developers like less rules, but issues of utilities, especially water availability and waste water treatment are more complicated because they aren’t provided by the City.
ASK: Where will the water come from? Is the development currently in a Critical Groundwater Depletion Area? Has a Stage 4 Drought been declared? Does you have a commercial well permit? For how much water? How is this measured? Can groundwater be used to fill the “resort-style” pool? Will there be limitations on my water use? If nearby wells start to go dry, can other landowners sue me personally?
ASK: How will the waste be handled? Will there be a septic system or wastewater discharge? Do these need a permit? Who gives these permits? Does the development already have a permit for this? If not, how long will it take? Does the community have environmental concerns about waste water discharge? Who would I talk with to find out more about this?
ASK: Is any part of the development in the flood zone? Understanding that there are different flood zone maps, ASK which one is the developer using. Are there other maps that show the land is in the flood zone?
ASK: When will the developers be turning over the running of the development to the Homeowners Association (HOA)? Will the developers be long gone at this point? Will the HOA be responsible for water shortages, permitting and water use violations? Will the HOA be responsible for running the waste water treatment plant?
ASK: How much will the initial monthly fee be? Does the HOA have the right to fine me if I violate one of their rules? Can the rules be changed? How? Who determines if a rule is broken? What happens if I can’t or don’t pay it? Can the Condo Association put a lien on my property? What happens if there’s a problem with the waste water treatment system, the swimming pool, the amenities? Who is responsible? The bottom line and my advice is READ EVERYTHING, ASK LOTS OF QUESTIONS, get answers in writing and read the 210 page document. Carefully. At least twice.