We review association documents and resale certificates for clients on a regular basis. Every week we post stats and something fun or interesting.

This week it is an 18-unit Discovery Park Condominium in Magnolia.

• Average Sale Price – ~$455 per sq.ft. (based on just one sale during the last 6 months)
• Currently For Sale – none
• Average Monthly Assessment – $0.42 per sq.ft. (so if your condo is 1,000 sq.ft you’d be paying ~$420/month)
• Move-in Fee – yes, $100
• Pets – permitted (per association rules – “the number of pets allowed is restricted to the owner’s ability to keep the pet’s noise, odor, and elimination needs at a level which does not become a nuisance for other residents of the building”)
• Rental cap – yes (see Fun Facts below for additional guidelines)
• EQ insurance – no
• Reserve funding – 30% (at least 70% is generally recommended)
• Risk of special assessment – Yes, significant

Fun facts – Rentals appear to be an important subject for this community.

First, “…at no time shall more than a total of three (3) apartments be rented…”

In addition, even if you do rent your unit, you can only do so for up to 5 years. Here is some applicable language “..If after an apartment has been an Approved Rental Apartment for five successive years [and] there is an existing Waiting List…then that apartment must revert to being an Owner Occupied Apartment…Owners are responsible for ensuring that their tenants can legally be removed at the end of the five year period…”

So, say you are one of the 3 lucky owners that can rent, are ok renting for no more than 5 years, and have been given the green light to look for a renter. Good to go, right? But, it turns out there are more hoops to jump through once you do find a tenant and can start collecting rent:

“Any owner wishing to rent or lease an apartment must notify the BOD once a bona fide offer has been received from a prospective tenant. The notice to the BOD must contain:
1. The terms of the proposed rental or lease agreement;
2. The name and address of the proposed renter or lessee;
3. Two (2) credit references;
4. Two (2) personal references;
5. Name and phone number of the previous landlord of the proposed renter or lessee.

The BOD has the right to verify the references and previous landlord of the prospective tenant. Based on its findings through these sources, the BOD will then inform the owner whether or not the prospective tenant is acceptable to the building. The criteria to be used in determining a prospect’s acceptance are:
1. Good credit rating, showing a sense of responsibility; and
2. Testimony as to the prospect’s respect for others’ rights and property.”

And when it comes to who and how lives in the building, the following apply to renters and owners alike.

“Occupancy in any unit shall be limited as follows:
1. One bedroom unit – two (2) persons
2. Two bedroom unit – four (4) persons

There is no restriction against families with children living in Discovery Park Condominiums. However, it should be noted that there are no special facilities or play areas for children in this condominium.

Small children shall not be permitted to wander unattended in the common areas.”

Ok, got it. It is crystal clear that “there is no restriction against families with children living in Discovery Park” yet there is plenty of emphasis on small children in this condominium And it sounds like a couple with a child or a couple planning on having a baby soon better make sure they don’t make an offer to purchase a 1 bedroom unit (unless of course the Association counts kids as “small children” rather than “persons”).

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And of course a fancy disclosure has to follow because attorneys tell us it is a good idea – all information contained herein is based on third party records, is not guaranteed, and is subject to change. We simply review, tell you what we read in someone else’s docs, and hope whatever they have is / was correct at that time.