Buy a condominium without maintenance reserves

Hello,

I assumed that it is always the case that when all apartments in the building are sold and a new community is formed, no reserves are available.

Wrong assumption!

The "reserves" remain accounted for by the property. When selling a condominium, the seller's proportional reserves are part of the purchase price to be paid for the condominium. In this respect, I would also be very interested to know what happened to the accumulated reserves.

Easter greetings

The "reserves" remain accounted for with the property. When selling a condominium unit, the seller's share of the reserves is part of the purchase price to be paid for the unit. In this respect, I would also be very interested to know what happened to the accumulated reserves

When individual condominium units are sold, that is certainly correct. In this case, however, the entire community of owners changes, i.e. previously there was probably only one owner for the whole house. I therefore suspect some large investor who now wants to sell the apartments individually with a large profit. However, he certainly does not build up large house reserves, as that would be dead capital, but rather invests such money in further projects. He then pays smaller repairs from the ongoing income or major renovations from the company's reserves.

I therefore suspect some major investor who now wants to sell the apartments individually with a big profit.

Yes, this is a building with furnished apartments. Many 2-room and a few 3-room apartments that were rented out for a couple of months. It is completely owned by a company. Now everything is being sold individually for a profit. As Musketier already said. That’s why I also see reserves on the one hand as dead capital. On the other hand, it does not help the sale if potential buyers find out that no reserves exist. That’s a bit of a risk for us...

That's a bit of a risk for us...

Not really; the purchase price should take this circumstance into account

Easter greetings

I therefore suspect some big investor who now wants to sell the apartments individually for a large profit.

That's correct - I forgot this option ops: Easter greetings

Well, we will offer the broker to talk to the owner and maybe increase the purchase price by 2,000 to 3,000 euros for all the apartments and rather use this money to create a reserve fund.

The 2,000 euros is not a big difference for individual buyers, but with a reserve of about 30,000 to 40,000 euros, many will surely feel secure. Let's see if it works.