Condo check list
Condominium Q and A
Admittedly purchasing property is one of the largest investments you will make in your life. Hence you want to thorough and certain the condo you are about to buy will not cause you remorse and or future aggravation. To avoid these pitfalls of condo ownership some valuable questions to ask include:
1. Is the condo association professionally managed?(Most of the larger complexes are) Unless it is a brand new construction, and the management team has not yet been hired, ask how long the professional manager has managed the complex. Note: The longer they have been with the property the better. Be suspect of complexes lacking professional management.
2. How do monthly Home Owners Fees compare with those of neighboring complexes? If you are working with an educated buyer's agent, they should be able to provide you with comparative fees. Note: Ask what exactly what services are covered under the fees. This can make a significant difference. For example, should a gym and cable TV be included, then you should expect a higher monthly condo fee as opposed to each condo owner paying for their own cable and Health club.
3. How fiscally fit is the condominium association? Prospective condo buyers should request and review current financial statements; board of director's minutes from previous meetings; by-laws, rules and CCR’s (covenants, conditions and restrictions). Are there unusual situations affecting condo owners? These documents will be made available and ARE a Contingency of purchase.
4. Are there foreseeable increases in Home Owners Fees or planned assessments. Are there presently on-going discussions about such a need? (Look through the CC&R'S and the minutes of the last few Associations meetings) Note: There should be an adequate amount of money in reserve to cover unexpected emergencies and repairs.
5. Ask existing residential owners as to what they like best and least about their properties living environment. Might even desire to ask them if they could do it over again, would they make the same purchase?
6. Most important, the purchase contract contains a professional inspection contingency. This provision states that after acceptance of your offer, the Seller should give you at least 17 days to conduct a professional home inspection of the condo (boilerplate), check out the associated common areas and review all pertinent disclosures concerning the property . (Time frames on these contingencies are negotiable).
DEFINITION OF CONDOMINIUM