I know it goes beyond the scope of a traditional home inspection, but I like to include some value added services for my clients.  I have mentioned before about little things I do like Appliance Recall Research, but a news story on the Local Fox station last night reinforced for me the importance of urging condo buyers to obtain and READ the meeting minutes from as many recent meetings of the Condo Association as they have access to.

The video is attached (gross out alert - it deals with raw sewage).  In short, the condo owners pay over $160 per month to the Association who has allowed raw sewage backups to exist for several months.  While a good inspector may likely uncover this issue during a typical inspection, such concerns that may be missed often can be found in the meeting minutes.

Among other important things, previous clients have used these reports to uncover concerns about:

  • Problem Neighbors
  • Unresponsive Maintenance Staff
  • "Tabled" Issues (for things like parking lot resurfacing, often linked to large assessments)
  • Common Complaints of Residents (windows, roofing, etc)

Many of these issues could not possibly be found during even the most diligent inspection, but all of them can significantly impact the pocketbook or quality of life (or both!) of the condo buyer-to-be.

I have no idea how many of my condo clients follow this advice, but I do know of at least 6 that have and uncovered some concerns that they were VERY glad they knew about before they bought. 

I should also mention that many Associations get very territorial about these documents and that can make obtaining them difficult to impossible.  But where the info is available, it is in everyone's best interest to read it (as the people in the Fox News story will surely tell you!)

 

6 Comments on Why ALL Condo buyers should read the Association meeting minutes BEFORE buying

Joseph - Wow man, I did not know this.  If you don't mind, I'd like to pass this on to a few of my current and former clients.

04/07/2008 11:23 AM by Jason Sardi, Pennsylvania Mortgage Broker (First Choice Equity Group Inc.)


Hey Joseph, Thanks for the post. I would add to also ask for the budget report. It can reveal a lot that the sellers may not be sharing. All my best, Jim

04/07/2008 11:24 AM by Jim & Maria Hart ~ Charleston, SC Real Estate (Agent Owned Realty)


Go for it!  If I was clever enough to figure out how to post the video as an image, I would have.

04/07/2008 11:25 AM by Joseph Michalski - PA Home Inspector (Sherlock Homes Inspections)


Excellent point, Jim!  The financials and budgets (especially upcoming assessments) are a very big concern.

04/07/2008 11:27 AM by Joseph Michalski - PA Home Inspector (Sherlock Homes Inspections)


Joseph,

It is so disturbing how the associations have all these rules and regulations about what a owner can or can't do to their homes even though they fail to honor their own maintenance commitments.  Upon the initial point of signing the contracts to purchase and/or refinance there should be a maintenance commitment rider in the actual mortgage docs which allows the owners a waiver of fees if there are conditions that can cause health risks and/or unsuitable living conditions.  I feel bad for these people because they are stuck.  They must abide by these rules as per their written agreements or  may be subject to penalties.  

04/08/2008 08:12 AM by Pamela Knight (Urban Knight Enterprises, Inc.)


Great point, Pam.  Unfortuntely, I am sure that a maintenace waiver is probably the last thing on many new condo buyer's minds when they are looking over their docs.  IT is something that I will add to my suggestion list though!  Thanks!

04/08/2008 09:13 PM by Joseph Michalski - PA Home Inspector (Sherlock Homes Inspections)


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Inspector: Joseph Michalski - PA Home Inspector (Sherlock Homes Inspections)
Joseph Michalski - PA Home Inspector
Souderton, PA
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Sherlock Homes Inspections

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