Questions to Ask When Buying A Condo

When you buy a condo, you join an association of owners that determines everything from whether to plant perennials in the courtyard to how to finance a major project. Before you buy, contact the condo board with the following questions. In the process, you will learn how responsive and well organized its members are.

What percentage of units are owner-occupied?

• Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale.

What covenants, bylaws and restrictions govern the property?

• Is there a grandfather clause in place? You may find for instance, that those who buy a property after a certain date cannot rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live with them. Have an attorney review property documents, including the master deed, for you.

How much does the association keep in reserve and are association assessments keeping pace with the annual rate of inflation?

• Ask how the money is being invested. Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs. To determine if the assessment is reasonable, compare the rate with others in the area. Be sure to compare apples with apples including how special assessments are handled.

What does or doesn't the assessment cover?

• Does it cover common area maintenance, recreational facilities, trash collation, snow removal, window washing, pest control, etc?

What special assessments have been mandated in the past five years?

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  How much was each owner responsible for? Some special assessments are unavoidable. If repeated, expensive assessments could be a red flag about the condition of the building or the board's fiscal policy.

Is the developer reputable?

• If the complex is new, find out what other projects the developer has built and visit one if you can. Ask residents about their perception of the developer.

A final note: Remember to play nice. When you buy into a condo building or homeowners association, you join a group with a variety of personalities and agendas. Negotiation and cooperation is key to living in harmony. Also, don't forget to ask about pets if you have one.