Last year the board of directors of a townhome community on the Peninsula decided to remodel its clubhouse. It was built in the 1970’s along with 189 townhome units.

The board decided to vote on a proposal to upgrade the clubhouse’s small kitchen and spruce up the party area with bright colors and new window covers. There was even talk about a flat screen TV. The budget was $45,000.

The vote was passed. Because many homeowners never attended the meetings, there was no one to object to the remodel. No one could have predicted the unusual circumstances that followed.

While trying to get city permits, it was discovered that this free-standing structure was not on record with the city. There were no plans, no permits, no blueprints — nothing to indicate that this structure was legally built. Some speculated it may have been a temporary sales office back when the townhomes were built.





Even the pool was not on record with the city and county. The county had to inspect the pool and immediately closed it down pending upgrades and safety issues. The HOA also had to pay additional costs to have inspectors come to the site.

Because the building is almost 40 years old, EPA inspectors need to inspect for and remove asbestos and lead paint. Clubhouses in a complex are considered a “public” and there are many new laws that must be complied with. The structure also had extensive termite infestation and dry rot. It was a mess.

Needless to say the “remodel” for $45,000 will probably top $150,000+.

This horror story got me thinking about a few lessons we could benefit from.

Lesson 1


When purchasing a townhome in an older complex with a pool, have your Realtor contact the management company to make sure the pool is on record with the county and complies with safety issues. Ask for documentation.

Lesson 2


If you are viewing properties that have a clubhouse, make certain you inspect the clubhouse and its bathrooms. You will become a part owner of the structure and you will be partly responsible for its repair and maintenance.

Lesson 3


Your Realtor MUST contact the management company to find out when the clubhouse had its last termite inspection. If you already own property in a PUD, attend the board of directors meetings and voice your concerns.

Despite this unforeseen mess, this complex is one of the most well maintained HOAs on the Peninsula. The roofs, painting, driveways, and fence repairs are kept up in a timely manner and the grounds are gorgeous. The reserves are more than enough to take on this project, and the budget is on track. No one would have imagined that the thorn in its side would have been its free-standing clubhouse and pool.

Even though this situation is a fluke, it doesn’t hurt to have a Realtor who knows what questions to ask.