When Buying a condo, many people may like the idea of the lower price compared to that of a Single Family Home. They may also like the idea of less responsibility with tasks such as yard and building maintenance. These are all very good reasons to consider buying a condo, however there are also many different things that any potential Buyer needs to be aware of before presenting that contract to purchase.
Below are key questions that must be answered before buying a condo:
- Condo Fees – How much are the Condo/Association fees? What do the fees cover?
- Reserves – Does this association have adequate reserves for emergencies and renovations?
- Special Assessments – Are there any special assessments that are pending? Have the current special assessments been paid for by the current owner and if not, what is the remaining balance?
- Lawsuits – Are there any pending lawsuits against the association?
- Management – Is the association managed by a qualified professional company? Does the association have on-site management.
- Rent – Do the association rules limit your ability to rent the unit?
- Restrictions – Will restrictions prevent you from changing visible elements such as the color of the front door or your window coverings?
- Board Temperament – What is the temperament of the condo board? (Board minutes could reveal controversies.)
- Debt – How much outstanding debt does the association have?
- Insurance – What does the association’s insurance cover? (You may have to purchase a supplemental policy for additional protection.)
- Arrears – What percentage of the units are in arrears on their dues?
- Complaints – Does the management handle owners’ requests and complaints quickly?
- Neighborhood – What is the neighborhood like?
If you are indeed considering buying a condominium, please take the time to research or visit the community, talk with residents and review the condo documents. For additional information, please visit the link below.