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When making a large investment, you should ask many questions. In the following article I will talk about a few of the more important questions to ask when buying a condo.
* What is the percentage of owner-occupied units in the complex? Finance companies might not finance a condominium in a complex which is heavily owned by investors not ocupying the condos. They will usually look for around 66% owner occupied. And remember, if no one wants to finance the condo it will afect you when not only just while you are buying, but when you are trying to sell it as well.
* Have any special assessments taken place in the past 3 years? Will there be any large maintenance projects 12 months? Will the expenses be covered by reserves?
Owners and associations alike have unforeseen maintenance costs. A good condo association plans ahead and make the fees enough to cover those costs. Many assessments indicates poor planning. It would be terrible for you to buy a condo from a person who paid small fees for years, and then you get to pay for an assessment as soon as you move in.
* Are there disputes currently unresolved between the owners and the Association?
If unit owners are constantly having problems, you might not want to live in that atmosphere. Here are some problems commonly experienced:
Proper use of the balcony. Most complexes don’t allow you to hang things off the balcony. This is in order to stop people from putting laundry and other things that could become problematic for occupats, but people make a fuss about little things too.
Pets. In complexes that allow pets, there often arise problems because one or two owners’ pets are nasty and poorly kept.
* Is the HOA involved in any lawsuits?
Sometimes the association will end up in suits with the condo owners, the providers of construction work or materials, or occupants of units. It will benefit you to discuss these with a lawyer.
* Is the HOA discussing any changes to the by-laws applied to the complex?
By-law changes can have an impact on your rights and enjoyment of the condo. You won’t get a vote until you purchase the unit.
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