There are oodles of condo complexes here. When considering a condo or townhouse purchase, there are questions to ask, before making that purchase.
What is the ratio of investor owned units to owner occupied units?
What is the delinquency rate? How many units are in foreclosure? Does the homeowner’s association keep money in reserves to cover the fees for the delinquent units?
Ask to review the association financials. Is there money on reserve for maintenance? They may not provide you with the information until you have a unit under contract. And, then your purchase will be contingent on review of those documents.
How much are the association fees? What do they cover? Are any utilities included? What is the cap amount on how high the fees can increase each year?
Are pets allowed? How many? What kind and what are the weight restrictions? Are there breed restrictions? Will the condo rules allow your 150 lb. mastiff? Pretty unlikely. Where are the pet walking areas on the property?
Be sure to ask for a copy of the minutes of the most recent meeting, a copy of the association budget, a review of upcoming assessments, a copy of the rules and regulations and a copy of the association by laws. Don’t forget to find out if there are any reserves in place for upcoming maintenance projects.
Depending on the type of mortgage you will be getting, your lender may ask to review these documents to approve the purchase. They are looking for the stability of the association.
There are considerations before making that condo or townhouse purchase.
Be sure you know which questions to ask.
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