Frequently Asked Questions on Condo Hotel
Historical Information View Updated Fort Myers MLS Listings ->
Q: What form of ownership will I have?
A: Each purchaser will receive a deed to their unit the same as any condominium.
Q: How can my suite be used?
A: Each unit owner will have the option of occupying their unit and/or placing it in the hotel management program. In that program, you will be allowed to use your suite for up to two weeks in the busy season and two weeks in the off season, free of charge, with the remainder of time available to hotel guests.
Q: How is the management handled?
A: A hotel management company will be formed to handle all regular hotel operations. The management company¿s responsibilities will include but not be limited to the following activities; Advertising and marketing, bookings and registrations for hotel guests, housekeeping and maid service, maintenance and repairs, administration, bookkeeping, food service and telephone operations. The hotel is designed with an apartment for a full time live in manager. The manager will be experienced in all facets of hotel management and administration and will hire and train a full staff of hotel personnel.
Q: How do I receive income in the hotel management program?
A: The management company typically collects all revenues from hotel guests and pays operating expenses, then forwards the remainder to the unit owner. This procedure is common practice for virtually all condominium hotels. The net amount to each unit owner should be commensurate with other condo hotels in the area. The hotel management company will book suites using a rotating computerized program, so that all unit owners have equal opportunity.
Q: What other expenses will I have/
A: Each unit owner will be responsible for their own real estate taxes, which historically have amounted to approximately 1.8% of the unit value. The tax bills are mailed in November to each unit owner. The condominium association will charge a monthly maintenance fee to cover reserves for replacement, real estate taxes on the common areas of the hotel, accounting and miscellaneous expenses. The maintenance fee should be nominal and billed to each unit owner on a monthly or quarterly basis.
Q: Who will manage the condominium association?
A: Since it is anticipated that essentially all unit owners will not be residents, an experienced third party company will be engaged to manage the condominium association. Each unit owner, however will have one vote in matters affecting the association, but will probably assign the right to the association management company.
Q: How can I purchase a condominium hotel suite?
A: Each prospective buyer will need to complete the following steps: First, you need to register your interest. This may be done on-line, on telephone, or in person. After this brief introductory period offered by the developer, you will be given the opportunity to reserve a unit in the complex. At this point you would choose your suite. Reservations will be accepted on a “first come – first served basis” governed by the date you registered. The pre-construction prices offered by the developer will be for a limited time and a limited number of units. The required reservation deposit is $5,000, payable to Becker & Poliakoff, our attorneys who will place the deposit into their escrow account at a local bank. All future increased deposits are payable in the same manner. When the condominium documents are completed and approved by the State of Florida, you will be advised that it is time to enter into a formal Contract for Purchase. You will receive the prepared contract and a set of the condominium documents for your review. You will have 15 days to examine the materials. To proceed, you will need to execute the contract and return it to us along with a check for the balance of 10% of the purchase price. (The original $5,000 deposit counts towards the 10%). At a later date, when we begin construction, an additional 10% deposit will be due (bringing the total deposit to 20%) Construction is planned to begin by the fall of 2006 and complete by the fall of 2007.
Q: What will be included in my suite?
A: All suites will be furnished including sofas, chairs, tables, televisions, beds, dressers, window treatments, plants, pictures, etc. Kitchens will include refrigerator, range or cooktop, microwave, dishwasher, plates, glasses, silverware, etc. Each suite will also include a washer/dryer.
Q: How will you handle the Closing procedures?
A: once the complex has been completed and has received a certificate of occupancy, you will be required to complete your purchase. You will be notified well in advance of the projected dates. Should you need financing, we have made arrangements with several lenders who have expressed interest in providing financing for you.
. Q: What about Insurance?
A: There are two types of risks that need to be insured. One covers the contents of your unit and the other is for liability associated with guest usage of your suite. We can refer you to several agents/companies who can provide these types of coverage. The condominium association provides insurance on the building and property.
ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THIS BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION 718.503 FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. NEITHER THE DEVELOPER OR ANY REPRESENTATIVE MAKE ANY REPRESENTATION RELATIVE TO A POTENTIAL PURCHASE AS AN INVESTMENT. ANY QUESTION RELATIVE TO SUCH POTENTIAL SHOULD BE ADDRESSED TO YOUR FINANCIAL CONSULTANTS OR ADVISORS.
Frequently Asked Questions on Condo HotelReal Estate