What
are [the] advantages of buying your new home at the planning
stage?
Buying your condo at the planning stage can involve substantial
savings and also allows you a wider selection of floor plans
and locations within the building.
What
are the advantages of buying a "new" home?
| 1.
|
A
new, clean home, which will result in less maintenance,
less repairs and in return, less expenses. |
| 2.
|
Choices
of decor and finishings, resulting in a home that meets
your tastes, rather than someone else's. |
| 3.
|
New
Home Warranty Protection. |
What is
the Louisiana New Home Warranty Act?
The LA NHWA was enacted by the Legislature in 1986 for the
purpose of providing mandatory warranties for the purchasers
and occupants of new homes in Louisiana and by providing
for the use of homeowners’ insurance as additional
protection against defects in the construction of new homes.
The Act does this by specifying the responsibility of the
builder to initial and subsequent purchasers of new homes.
Builders are encouraged to obtain insurance to cover the
builder’s obligation. More importantly, the Act specifies
that the insurance is automatically transferable to subsequent
owners.
The
Act provides specific warranties ranging from 1 to 7 years
for defects. The specifics of the warranties are:
|
1.
|
One
year for defects due to noncompliance with building
standards or due to other defects in materials or workmanship
not regulated by building standards. |
|
2.
|
Two
years for plumbing, electrical, heating, cooling, and
ventilating systems exclusive of any appliance, or fixture,
and equipment must be free from any defect due to noncompliance
with the building standards or due to other defects
in materials or workmanship not regulated by building
standards. |
|
3.
|
Seven
years for major structural defects due to noncompliance
with building standards or due to other defects in materials
or workmanship not regulated by building standards. |
The
Act provides some exceptions for such things as fences,
landscaping, damage to property that is not a part of the
home, mold and mold damage. (LSA-R.S. 9:3144(B))
What does
it mean to be a “condominium”?
In Louisiana, Condominiums are created by establishing a
“Condominium Regime.” This means portions of
immovable property (the land and buildings) are subject
to individual ownership (the unit) and the remainder is
owned in indivision by such unit owners (unit owners co-own
the common areas). To become a condominium, the owner of
the property (the declarant) executes a Condominium Declaration,
which includes certain provisions required by statute (a
description of the property and each unit, how the condominium
will be governed, how dues are assessed, etc.). The Declaration
becomes effective against third parties (essentially purchasers
because it should be done before any of the condo units
are transferred) when it is recorded in the conveyance records
of the parish where the property is located (in this case,
East Baton Rouge Parish). The Declaration does not go through
a formal approval process. The important thing is that it
is recorded before any sales are closed otherwise the Declaration
does not apply to those units sold.
What is
a Public Offering Statement?
By law, all potential purchasers must be provided with a
Public Offering Statement, which must include a statement
about the following or copies of the following:
| 1.
|
Copy
of Condominium Declaration. |
| 2.
|
Copy
of Articles of Incorporation of the condominium homeowner’s
association. |
| 3.
|
Copy
of By-laws of the condominium homeowner’s association. |
4. |
Copy
of any predial lease or sublease, if applicable, to
the property. |
5. |
Details
about how the condominium will be managed. |
6. |
An
operating budget. |
7. |
A
brief narrative of the significant features of the condominium
documents in compliance with LSA-R.S. 9:1124.102(A)(7).
|
8. |
A
diagram or floor plan of the unit. |
9. |
A
statement regarding any exemptions regarding unsold
units. |
10. |
The
terms of any warranties expressly made or limited by
the declarant. |
11. |
Information
about judgments and suits, if any, against the condominium
homeowner’s association. |
12. |
A
description of the insurance coverage for the condominium. |
Establishing
the condominium regime is wholly separate from the permitting
process required prior to construction of the building.
What is a Condominium Homeowner’s
Association?
Because ownership of a unit will include co-ownership of
certain common areas in the condominium, a homeowners association
is essential for managing and regulating the condominium
property. The Association is typically a non-profit corporation
and membership is limited to unit owners.
What is
a Certificate of Occupancy?
Upon completion of construction of the condominium, the
building and each unit will undergo a thorough inspection
by a City inspector. A Certificate of Occupancy will be
issued for each unit that meets all applicable building
codes and ordinances.
What is
a “walk-through” inspection?
A “walk-through” inspection is an inspection
of your home with a Lafayette Development Holding Customer
Service Representative. Before Closing, the Customer Service
Representative and purchaser will walk through the property
to discuss any items that may still need work and from that
create a punch list (a “to do” list). At this
time, Lafayette Development Holding’s Customer Service
Representative will also demonstrate functions of your home's
features (security system, exhaust fans, water shut-off,
electrical breaker panel, etc.) as well as the features
of the building itself.
When do
I get my keys?
Keys are given to you on the date that you take possession
of your new home, and are part of your closing package which
you sign for upon receipt from your customer service representative.
Also included in your closing package are any keys/access
cards required for common areas, two sets of keys to your
home & two mailbox keys, Home Care Handbook - includes
reference to all the finishes/appliances in your home, as
well as a reference of the suppliers and their telephone
numbers.
When is
closing?
The Closing date will depend upon the construction schedule
in effect at the time you sign your purchase agreement.
Depending upon the time frame for completion of the Condominium,
Lafayette Development Holding, L.L.C. and the purchaser
will set an outside date for closing, which will be stated
in the purchase agreement.
What happens
at closing?
At Closing, the act of sale transferring the property is
signed. Each party will also sign a HUD-1 statement which
reflects fees paid by both, including the purchase price
of the condominium, any applicable deposits and prorations.
The sale is “closed” whenever the transfer documents],
typically referred to as a “Cash Sale” or a
“Sale with Mortgage”, whichever is applicable,
are signed. The act of sale will be recorded in the conveyance
records of East Baton Rouge Parish.
How is
my moving day established?
The moving process is scheduled in an orderly fashion. It
starts with lower floors and finishes with the Penthouse.
During the move-in process, corridors and lobby areas may
remain unfinished, as the final touches are postponed until
the majority of homes are occupied, to avoid damage to the
final finishes.
Why would
I need a locker?
Lockers are used to store large or cumbersome items that
are not used on a regular basis such as bicycles, ski equipment
or holiday decorations. They allow the homeowner to store
certain items conveniently without having them encroach
on valuable living space within your home.
Can I
buy extra parking or locker units?
Just as condominium community is unique and different, so
are the parking and locker requirements for each community.
Therefore a certain percentage of homes must be sold before
Lafayette Development Holding LLC can determine the exact
number of parking and locker spaces available. At this point,
the purchaser will be contacted to make an appointment in
order to select an additional space.
Do I get
to select my own colors and finishes?
This depends on the status of the home you've purchased.
For pre-construction condominiums, color selection begins
shortly after the commencement of construction. You will
be contacted by a Customer Service Representative to arrange
for an appointment. At this time you will select colors
and finishes (carpet, tiles, cabinets and countertops) and
may also arrange for any upgrades or specialty items.
In some circumstances, if you are moving into a completed
home, Lafayette Development Holding may have selected some
of the finishes and colors of your unit.
Do I need
to buy insurance?
Yes, as the homeowner, it is your responsibility to obtain
a condominium homeowner's insurance package that covers
contents plus improvements that you may make to the unit.
These are not covered by the condominium Association’s
insurance. The Condominium Declaration will include details
of the insurance that is maintained by the Association,
which at least must cover the building and common areas
plus general liability.
Am I allowed
to have pets?
Generally, domestic pets will be allowed. Specific rules
and regulations regarding pets will be stated in the Condominium
Declaration.
GLOSSARY
Condominium
The property regime under which portions of immovable property
are subject to individual ownership and the remainder thereof
is owned in indivision by such unit owners.
Condominium Declaration
The instrument by which immovable property is made subject
to the Louisiana Condominium Act. It defines the boundaries
for each home and common elements. It allocates the responsibility
for the repair and maintenance of the homes and common elements,
outlines the condominium's provisions regarding occupancy
and use, specifies common expenses and each owner's proportionate
interest in the common elements, and details each owner's
percentage share of the overall common expenses.
Declarant
The party who executes the condominium declaration subjecting
the immovable property to a condominium regime.
Recordation
The time in which the condominium regime is established
and becomes effective against third parties by recording
the condominium declaration in the conveyance records of
the parish in which the immovable property is located.
Condominium Ownership
The ownership of a condominium involves 2 aspects:
|
1.
|
Individual
ownership of a Unit. |
|
2. |
Co-ownership
and shared responsibility for the costs of maintaining
and repairing common elements. |
Public Offering Statement
A summary of the significant features of the proposed condominium,
and of the relevant condominium documents governing same.
Unit
A part of the condominium property subject to individual
ownership. A unit may include air space only. A unit includes
such accessory rights and obligations as are stipulated
in the condominium declaration.
Condominium property
All interests in land, improvements thereon, and all servitudes
and rights attaching to the condominium.
Unit designation
The number, letter, or combination thereof or any other
official designation identifying a particular unit in the
condominium declaration.
Condominium parcel
A unit together with the undivided interest in the common
elements which is an inseparable component part of the unit.
By-laws
The document governing administration and operation of the
condominium association.
Common Elements (Common Areas)
The portion of the condominium property not a part of the
individual units and owned in indivision by the Unit Owners,
for example, parking garage, roof, recreational areas, hallways,
etc.
Condominium Association
A corporation, or unincorporated association, owned by or
composed of the unit owners and through which the unit owners
manage and regulate the condominium.
Board of Directors
An elected group of homeowners who are responsible for administration
of the affairs of the Association and the operation, care,
upkeep and maintenance of all the property and services
of the Condominium.
Limited Common Elements
Those common elements reserved in the condominium declaration
for the exclusive use of a certain unit or certain units,
which may include balconies, patios, etc.
Closing
The date upon which the seller and purchaser execute an
act of sale transferring the condominium parcel from the
seller to the purchaser.
Common Expenses
| a. |
Expenses
of administration, maintenance, repair, and replacement
of the common elements. |
| b. |
Expenses
declared to be common expenses by provisions of this
Part or by the condominium declaration or bylaws. |
| c. |
Expenses
agreed upon as common expenses by the unit owners. |
Reserve
Fund
A fund to be set aside by the condominium association to
cover the repair and replacement of the common elements.
15 Day Right to Cancel
Within 15 days of receipt of a public offering statement,
a purchaser, before conveyance, may cancel any contract
to purchase a unit from the declarant.
DISCLAIMER:
THE CONTENT OF THIS WEBSITE IS PROVIDED FOR INFORMATIONAL
PURPOSES ONLY. FOR ADVICE ON A SPECIFIC ISSUE OR QUESTION,
YOU SHOULD CONSULT YOUR OWN ATTORNEY.
