The par value of a unit can be found once you know the square footage of each until and therefore, the total square footage of all of the units. You need the plats and plans to do this.
1) Find the total square footage of all of the units.
2) Find the square footage of each individual unit.
3) Take individual unit’s square footage and divide it by the total square footage. (ie. If the total is 2000 sq ft, and the individual unit is 500 sq ft
500 divided by 2000 = .25 (so this unit takes up 25% of all of the total) (Make sure all of the par values of the units, plus parking par values if necessary, add up to one. Have Eric check your math.)
4) Now take the Total Budget (find this towards the end of the Public Offering Statement section. Remember, theTotal Budgetis the Total Expenses PLUS Replacement Reserves.
5) Divide the Total Budget by 12 (because you are trying to find what is owed monthly) So, for example, say your Total Budget is $9,000.00. Take $9,000.00 and divide it by 12. You should get $750.00.
6) Take $750 and multiply it by .25 You should get $187.50.
7) $187.50 is therefore your MONTHLY CONDO FEE.
8) The initial condo fee is always double this, which is $375.
Par Values get inserted on the last page of the DECLARATION and BYLAWS.
Par Values and Condo Fees get inserted in the CONDO FEES Section.
Peter D. Antonoplos, Esq. is a partner in the Law Offices of Peter D. Antonoplos, PLLC. Mr. Antonoplos’ practice focuses estate planning and real estate matters. Mr. Antonoplos is admitted to practice in the District of Columbia, New York State; and State of Maryland. Mr. Antonoplos routinely lectures on real estate and probate law issues in Washington, DC and New York. Mr. Antonoplos lives in North West Washington, D.C. He is an avid chess player and motorcycle enthusiast. He may be reached at 202-803-5676 or Peter@AntonLegal.com