Are you looking to buy a property in Jersey Shore but aren’t sure how condos operate? In this video, I’m going to explain how our two-unit condos work here at the Shore. We’ll look at the expenses of this option so you know exactly what to expect.
How Two-Unit Condos Work
One of the most common questions we get here at the Jersey Shore is how our two-unit condos operate. As you may know, it’s very common to have a building with two units, either side by side or top and bottom. So how do two-unit condo buildings work, and what are the fees?
The good news is that, traditionally, there are no condo fees—though it’s a little bit more complicated than that. All of our two-unit condo buildings are going to come with a master deed or what’s commonly referred to as condo docs. This is going to describe how the common expenses between the two units are shared equally, or 50/50. Of course, this is assuming that both units are the same size.
Sharing Insurance Costs
Because there is no condo fee, the only expense you’re going to have every year is the master insurance policy for the building. The building is going to share everything equally, and the two-unit condo owners are going to split the cost for the master hazard and master flood insurance. The other items are going to be handled as they arise.
For example, if you need a new roof, the two-unit owners are going to agree upon it, select a contractor, and share that cost equally 50/50. Before you submit an offer, one of the parts of your contract process is going to be reviewing that master deed. It will include the percentage of ownership broken down; sometimes you’re in a three-unit building and it won’t be 50/50.
It’s very important to review the master deed and know what your share of the common expenses is.
Living In Jersey Shore
I hope this helps you understand how our two-unit condo buildings operate here in Jersey Shore. If you have any questions, feel free to reach out to me and I’m always here to help.
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