In this YouTube video, real estate agent Scott Selleck explains recent changes to New Jersey condo and homeowners association (HOA) law that now require associations to conduct engineering studies for capital improvements and maintain adequate reserve funds, often exceeding the previous 10% minimum. He emphasizes the critical importance of thorough due diligence during the attorney review period, advising buyers to scrutinize financial statements, budgets, meeting minutes, bylaws, and upcoming capital projects to uncover potential special assessments that can range from $15,000 to $130,000. Selleck illustrates these points with a detailed case study of a client, Jay, and his wife, who purchased a riverfront condo in Edgewater, NJ. By obtaining extensive documents—including two years of financials, current budgets, and six months of HOA meeting minutes—Jay discovered that an initially estimated $30,000–$40,000 special assessment was actually a $100,000 future liability. Working with an experienced real‑estate attorney, Charles, and leveraging the attorney‑review window, they negotiated a seller‑paid credit at closing that covered the assessment, securing five years of assessment‑free ownership for the buyers. Selleck also highlights his post‑closing support, providing trusted contractors for renovations and cleaning, underscoring his commitment to client goodwill beyond the transaction. The video concludes with a call to action for prospective condo or co‑op buyers throughout the Bergen County corridor, offering his contact information and a link to a related blog post.
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Owners are getting hit with special assessments from $15,000 to $130,000 assessments. Hi, this is Scott Selleck from Keller Williams City Views Realty. Jay and his wife ultimately purchased in Edgewater, New Jersey, along the riverfront. This is a different time now we're in now with the law changes regarding condo association, homeowners association management being responsible for getting the engineering studies done for the capital improvements of these buildings. And making sure that there is a plan in place and that there's proper reserves. A lot of these associations now require not just 10% capital reserves. So it's extremely important to work with a realtor that understands the dynamics of how to do the due diligence during attorney review and also throughout the negotiations, especially during the negotiations before you even get into attorney review. If you don't do that. The buyer is at risk of potentially inheriting significant issues afterwards and payments. So before you get out of attorney review, or during attorney review, that's the most time, the strongest leverage that buyer has to getting a clear picture of what's going on with the association, negotiating with the seller to pay all of it, any kind of capital improvements assessments which are current and also future, planned or walking away if it's just too daunting. So Jay and I worked great together. We got financials during the offer, first 2 years, full years of financials. We've got the current budget. We got 6 months of minutes for the meetings and why that's important during a review, because during those monthly HOA meetings is when projects are discussed, future projects that are needed for the association. Now and projected out to the future. So that's basically the exposure going forward. The complex that we were ultimately made offers on had something very interesting. Had what's called closed-end minute meeting policy, basically saying that even during attorney review, association management did not have to turn over those those minutes. Did say that if someone wanted to go to their office to review the minutes in their office. They can do that. Jay was not the average buyer. He's extremely information-oriented. Him and his wife asked great questions through the process. He went to the management office, he basically went through everything, and what he uncovered was fascinating. What we thought was a $30,000, $40,000 assessment turned out to be a $100,000 assessment over the time for the next wave of work that was coming to this complex. It was a game changer because what we ended up ultimately doing with his attorney, Charles— Charles has over 35 years experience in law and real estate. I bring 34 years together, close to 70 years. And then you have Jay coming in with his highly analytical, brilliant, going through all the financials, the bylaws, the capital improvements and a budget. And what he was able to do is basically negotiate a fair, large sum payment at the closing towards the assessments. He got his lender to agree and the association to agree that seller would pay that credit directly at the closing. So his next 5 years living there in that complex has no capital improvement assessment, which was huge. When you're working through a transaction like this and you have a keen awareness how important this is, you don't want to have your client put at risk. There's only one way to do it is do it the right way. And we worked as a great team and we closed on the sale 3 weeks ago. They're thrilled. They're going through renovations right now in the apartment. They're actually using my handyman contractor who's licensed to do the work. They're going to use my cleaning person. So the sale just doesn't stop even when we get to the closing. They're friends for life and they're going to have the work done with a credible person. I don't get paid for any of that afterwards. It's just goodwill and for me to add value. So this is the type of transaction I do best. And I created a blog and the link is below with the blog. So feel free to like the video if you like it. If you have questions about purchasing a condo or co-op from Weehawken all the way up through Fort Lee, just give me a call. Scott Selleck, Keller Williams City Realty, 201-970-3960. Scott, I would always have your back and you'll learn a lot along the way. You'll question everything. And when you're done, you'll have peace of mind that you were covered.
