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Question Condo Buyers Should Ask
Buying a condo is different from buying
a single family home.
The Minutes: Take a look at the minutes of
association meetings. See what current owners are
griping about. The complex could be having difficulties
if the complaints are about plumbing or landscaping. The
minutes also detail what projects are under way.
The Management: Is
the condo managed by professionals. In an effort to save
some association attempt management, while many are
competent other lack practical knowledge of exactly what
they are supposed to be doing. Professional managers do
this for a living.
Bylaws and Special Restrictions: What restriction
and bylaws govern the complex. Be sure to get a copy of
the bylaws to see if you'd be comfortable living there.
Be sure to check for Grandfathers Clauses. There may be
restriction placed on new owners.
Owner Occupied: What percentage of the building is owner occupied.
Higher percentages of owner living in complex is preferred. The
higher percentage the more marketable for resale.
Financial Condition:
How much is kept in reserves. Reserve standards $2000 to
$3000 per unite or 25% of the annual gross income of the
association. The age of the complex is a key factor
here. More reserves my be required as the building ages.
What's Covered:
What does the fees cover - common area, trash, snow
removal, pool, gym.....
Legal Problems: Does the
Association have any legal problem. Contact a good real
estate attorney to go over the bylaws and to check court
records to see if any owners have filed suits against
the association..
The Special assessment
History. What assessment have there been in the last
five years and how much was each owner responsible for.
Delinquency Rate: If owner
aren't paying association dues on time, then the
funds might be under funded and or there my be some
discontent.
Renter Friendly: Is
the complex renter friendly. What are the rental
policies.
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