Special Assessments at Turquoise Place: What They Mean

Are you seeing the words “special assessment” in Turquoise Place documents and wondering what it means for your budget or sale? You are not alone. In Orange Beach, these charges come up more often than many buyers expect, especially with coastal weather and salt air in the mix. In this guide, you will learn what special assessments are, why they happen at Turquoise Place, and how to plan whether you are buying or selling. Let’s dive in.

What a special assessment is

A special assessment is an extra charge that a condominium association bills to owners outside of regular dues. Associations use it to pay for unexpected repairs, major capital projects, insurance deductibles after a storm, or legal costs. It is a tool to close funding gaps when reserves or insurance do not cover the full expense. You will see it described in the condominium declaration and bylaws for your building.

Common triggers include storm or structural damage, large system replacements like elevators or chillers, code-mandated upgrades, and reserve shortfalls discovered in a reserve study. The amount you owe is usually based on the allocation method in the governing documents, often tied to your unit’s percentage interest or a similar formula.

Why they happen at Turquoise Place

Turquoise Place sits on Alabama’s Gulf Coast, which faces elevated hurricane and storm-surge risk. Major storms can drive large repair needs to façades, windows, roofing, balconies, elevators, and building systems. Events in recent Gulf seasons, such as Hurricane Sally in 2020, showed how quickly coastal damage can add up across the region.

Salt air also accelerates corrosion and wear. Exterior metal, railings, and mechanical systems on beachfront high-rises can deteriorate faster than inland buildings. That means more frequent capital work over time and a greater chance that a board will need to levy a special assessment when reserves are not enough.

Insurance is another local factor. Coastal associations often face higher premiums and larger wind or hurricane deductibles, sometimes calculated as a percentage of the total insured value. When a covered loss occurs, the deductible portion is the association’s responsibility. If the reserve fund cannot absorb it, owners may see a special assessment to cover that gap.

How amounts are calculated and paid

Your share of a special assessment is determined by the recorded declaration for Turquoise Place. Many declarations allocate costs based on each unit’s percentage interest. Others use equal shares, square footage, or a combination. You should confirm the exact method in your Turquoise Place documents.

Boards often allow payment options if the documents permit it. You might be able to pay a lump sum or follow an installment plan over months or even years. Installments can ease cash flow but will raise your monthly housing cost for the duration of the plan.

Timing, notice, and votes

Approval rules are set by the declaration and bylaws. Smaller or routine special assessments are typically approved by the board. Larger assessments or those lasting beyond a certain period may require an owner vote. Notice requirements, meeting procedures, and thresholds will appear in the governing documents.

Insurance deductibles and storm losses

After a significant storm, an association may file a claim and receive payment minus a large wind or hurricane deductible. In coastal Alabama, deductibles can be substantial. When that deductible or any uncovered portion of a loss exceeds available reserves, the board may levy a special assessment. Your share will follow the same allocation rules in the declaration.

It is important to review the master insurance policy declarations and any deductible schedules as part of your due diligence. Ask specifically how hurricane and wind deductibles are handled and whether owners are responsible for a portion through a special assessment if a claim occurs.

Alabama framework and enforcement basics

In Alabama, the recorded condominium declaration, bylaws, and rules define the association’s authority to levy and enforce assessments. These documents typically outline the calculation method, approval process, and remedies for nonpayment. Associations commonly have lien rights for unpaid assessments and can pursue collection per the declaration and applicable state law.

When you are under contract, you will often receive an estoppel certificate or payoff statement from the association. This document shows outstanding regular and special assessments and may disclose any pending special assessments. Lenders rely on it during underwriting and closing.

Buyer due diligence checklist for Turquoise Place

Before you finalize a purchase, request and review:

• Declaration/CC&Rs and bylaws for allocation formulas and vote requirements
• Current budget, year-to-date financials, and bank statements
• Reserve study and reserve fund balance
• Board and owner meeting minutes for the past 12 to 24 months
• Master insurance policy declarations and deductible schedules
• Estoppel certificate or payoff letter showing unpaid or pending assessments
• Notices, ballots, and any communications about planned projects
• Any pending litigation disclosures and related legal budgets

Key questions to ask the association or manager

• Are there pending or planned special assessments? For how much, and when?
• How are special assessments allocated among units at Turquoise Place?
• What is the current reserve balance compared to the reserve study’s recommendation?
• What capital projects are on the horizon in the next several years?
• How are wind and hurricane deductibles allocated after a covered loss?
• What assessments have occurred over the past 5 to 10 years and why?

How to read the estoppel certificate

The estoppel will show what is due today and whether the association has adopted or announced any special assessments. Check for due dates, installment options, and whether the assessment follows the allocation method in the declaration. Confirm that the numbers match recent board minutes and owner notices.

Seller action steps if an assessment exists

Sellers should disclose known special assessments and any pending votes or notices. This is typically handled through state and local disclosure forms and the resale packet. In many cases, you will negotiate who pays the assessment.

You have a few options:

• Pay the assessment at or before closing
• Credit the buyer through a price reduction
• Split costs or set aside funds in escrow if allowed by the contract and association

Your title company and closing attorney will confirm whether any unpaid assessments create liens that must be cleared prior to closing.

Impact on financing and resale

Large pending assessments can affect loan approval and buyer affordability. Some lenders may require that assessments be paid in full before closing or that buyers hold reserves in escrow. If you plan to use a government-backed loan, the condo project’s approval and funding status can also factor into underwriting. Always verify current project eligibility if that applies to your financing.

From a resale standpoint, a clear explanation of what the assessment covers can help buyers understand the long-term benefit, such as completed façade repairs or modernized elevators. Completed projects that address big-ticket items can improve building condition and predictability going forward.

Red flags and positive signs to watch

Knowing what to look for can help you gauge assessment risk.

Red flags:

• Frequent large special assessments in a short period
• No current reserve study or low reserve balance compared to recommendations
• Minutes that reference urgent repairs without a plan or funding source
• High hurricane deductibles without a budget strategy

Positive signs:

• Recent reserve study with an active funding plan
• Clear minutes that explain upcoming projects and timelines
• Transparent communication about insurance, deductibles, and risk management
• Completed capital projects with documented costs and outcomes

A simple plan for buyers

• Ask early. Request documents as soon as you go under contract.
• Read the declaration. Confirm allocation and voting rules for special assessments.
• Review reserves. Compare the reserve balance to the study’s recommendation.
• Study insurance. Understand wind and hurricane deductibles and how they are paid.
• Verify with the estoppel. Match disclosures to minutes and notices.
• Budget for risk. Set aside funds for possible assessments in a coastal building.

A simple plan for sellers

• Gather documents. Have minutes, budgets, insurance details, and assessment notices ready.
• Disclose clearly. Explain the purpose, timing, and payment options for any assessment.
• Offer solutions. Consider paying at closing, providing a credit, or negotiating escrow.
• Communicate benefits. If the assessment funds lasting improvements, highlight the value.

Final thoughts

Special assessments at Turquoise Place do not have to be a deal breaker. They are a normal part of coastal condominium ownership, especially after storms or for major building systems. With the right questions and documents, you can understand the risks, budget wisely, and negotiate a fair outcome on your purchase or sale.

If you want a local, condo-savvy approach to Turquoise Place, reach out to Charlie Guy for a thoughtful game plan and concierge support from contract through closing.

FAQs

What is a special assessment in an Orange Beach condo?

• It is an extra charge outside of regular dues that the association bills to fund unexpected repairs, capital projects, insurance deductibles, or other shortfalls per the governing documents.

Why are special assessments more common on the Gulf Coast?

• Coastal exposure brings higher hurricane risk, salt air corrosion, and larger insurance deductibles, all of which increase repair needs and the chance of assessments.

How are Turquoise Place assessments divided among owners?

• Allocation follows the recorded declaration, often by each unit’s percentage interest or another stated formula; verify the exact method in your documents.

Can a board approve a large assessment without an owner vote?

• It depends on the declaration and bylaws; some require an owner vote for assessments above a threshold or for multi-year assessments, while smaller ones may be board approved.

What documents should buyers review before closing at Turquoise Place?

• Request the declaration/bylaws, recent financials, reserve study, minutes, insurance declarations with deductibles, the estoppel certificate, and any assessment notices.

How do insurance deductibles impact owners after a storm?

• If the association’s wind or hurricane deductible is large and reserves are insufficient, the board may levy a special assessment to cover the deductible portion.

What are my options if there is a pending assessment when I sell?

• You can pay at closing, adjust the price, split costs, or use escrow if allowed; the right choice depends on timing, amount, and negotiations with the buyer.