Cindy Abraham, A Team Florida, Keller Williams Realty Professionals

Why your Association Needs to Know How to Properly Process an Application            

Remember that the SELLER is one of your neighbors and the BUYER is your future neighbor.  In these times, the condo is under as much scrutiny by the banks as the buyer is from the Association, so be courteous and professional.

Once the property is listed, you are dealing with the Seller’s agent.  Condos that have the Right of First Refusal need a document signed by your unit owner stating that their unit is up for sale, with which Real Estate Company and at what price.  Ask for an emailed copy of the listing printed out from the MultiList real estate computer system to check for correct information, maintenance fees, parking space info and application fees.

Once a contract is executed by both parties it needs to be immediately submitted to Association WITH the buyer agent’s business card or contact info.  The contact person for you from this point on is the Buyer’s agent. 

When you receive an executed contract, you should also receive an information sheet that includes the contact information for the Buyer, Seller, Buyer’s agent, Listing agent, Closing company and Lender.  For a sample of a Contact Info sheet, please contact us at INSIDEHILLCREST@aol.com.

First of all, review your application.  You are dealing with a POTENTIAL buyer, not a resident.  The application is a request for information in order to do a screening. Try to keep the application as concise as possible.  It is less burdensome on the buyer’s, and easier for board members to review.  If you use a company to do your background and credit checks, e.g. Veristat, start with their required information and consent page and then add a page for other information the board needs.   There is absolutely NO REASON that your application needs to be more then 10 pages AT MOST – and this should include:

1. Guidelines and Fees for the application process; legally the application fee cannot exceed $100 per person (or married couple), $150 for the estoppel letter, and hopefully, a reasonable fee for the Condo Questionnaire.

2. Request for necessary information and Release Authorization in order to complete credit and background check to submit to screening company.

3. Legally required Frequently Asked Question and Answer Sheet for your building.

4. Receipt of  Condo Docs (to be sure the applicant has received the Articles of Incorporation, By-Laws, Declaration of Condominium, Financials, and Governance Form)

5.  Occupancy Affadavit – signed and notarized as to who will be occupying the unit and auto information for the residents.

6.  Rules and Regulation sign-off sheet that stresses your building’s restrictions; i.e.  over-55, one car, no pets, cats only, etc.

You do not need the Emergency Contact sheet until they are an approved resident.  As for “references” – anybody ever call a personal reference that had anything negative to say?  Use a professional screening company.