Condos - What you need to know!
Buying a condominium unit (condo) is a great option for first time home buyers, and for those looking to downsize from a larger home or just looking for the amenities some condo complexes offer. However, financing a condo in today’s market can be tricky. Lenders require a fair amount of in-depth information when financing in a condominium project. As a buyer, it is strongly recommended you obtain and understand the answers to these questions when considering the purchase of a condo. Your lender will do more due diligence if you decide to move forward with the purchase, but these basic questions will help everyone understand the complexities of this kind of community up-front.
- Are all the phases and units of the complex 100% complete?
- Has the project been converted within the past three years?
- What is the owner occupied percentage vs. investment percentage?
- What are the monthly condo fees and what do they cover?
- How is the complex managed? Professionally or self-managed?
- What is the total dollar amount of cash on hand?
- Is there a reserve fund in the budget and is it adequate?
- Are there any pending special assessments?
- Are there any current lawsuits against the condo complex?
- Is there a Master Insurance Policy in place and is it adequate?
- Are the unit owners the sole owners of, and do they have the sole right to the use of, the common elements including all buildings, roads, parking and amenities?
- What are the specific condo association bylaws and rules?