Condo Fees in New Orleans Condos, What is Covered?

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What do Condo Fees Cover ?

     All condo fees cover insurance, upkeep, maintaince and common areas. Most condos in French Quarter also cover termite contracts, water and trash, common electricity, security, and reserves. Each month part of the condo fees are put into reserves for future repairs or future updates that the condo association is looking to do.

     The best way to see all the things that are covered is to review the budget for that year. Reviewing the budget will give you each line item that is covered by the association. This really helps buyers know everthing that is covered by the association. It will also tell you the amount of money that is in the reserve account. Lenders require 10% of the budget to be in reserves for conventional financing.

     To know future needs and things about the association it is advisable to review a copy of the minutes of the annual condo association meeting. This will tell you about current and future issues of the association and what plans they have for the future.

     Condo fees do not cover taxes. Very Few associations cover electricity. If the condo association is in a flood zone then the condo association pays a per centage of the flood insurance. Most times it is all covered by the association. The lender will check this factor. 95% of time there is no issue.

 

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