10 Questions to Ask Your Condo Board
Before buying a condo you should set contact the condo board association to ask the following questions. You’ll find out how organized, responsive, and helpful they are in addition to getting your questions answered.
1. What is the percentage of owner-occupied units? What is the percentage of tenant-occupied units? In general, the more percentage of owner-occupied units, the more marketable the units are for resale.
2. What restrictions are put on the property? What are the covenants and bylaws? What grandfather clauses are in place for certain residents? Always ask for a copy of the bylaws to figure out if you can live with them and as with any contract ask a lawyer to review them.
3. How much money does the association keep in reserve, and how much of that money is invested?
4. Are association fees staying with the rate of inflation, and how do they compare to other condos in the area?
5. What do condo fees cover? This could include common area maintenance, recreational facilities, snow removal, and trash collection.
6. What special fees or assessments have occurred over the past 5 years? How much was the owner responsible for? Repeated expensive assessments can be a red flag about the condition of the building or the fiscal responsibility of the board.
7. How much turnover do the units have?
8. Are the condos involved in any litigation that could include the homeowners or builders?
9. Is the developer reputable? Find out any other projects that the developer has been involved in and visit the location if you can. Talk to other residents about their perceptions and opinions, and ask for an engineer’s report for developments that have been reconverted to find out what shape the building is in.
10. Are there multiple associations involved with this property? If so, the development might require separate assessments if they are considered an umbrella association.
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