When you buy a condo you also buy into an association. The resale package tells you about budgets, reserves, rules, pending assessments and litigation. Read it carefully, compare monthly dues with what they cover and ask for the reserve study.
What is in the resale package?
Expect governing documents, a current budget, recent meeting minutes, financial statements, insurance information and a statement of any assessments. Some states give buyers a short window to review and cancel.
Dues, reserves and assessments
Higher dues are not necessarily worse; they may cover heat, water, insurance or a healthy reserve. Look for a funded reserve study and a track record of planned projects rather than surprise assessments.
Rules and restrictions
Check pet policies, rental caps, renovation approvals and parking assignments. Make sure the rules fit how you plan to use the unit.
Financing considerations
Some lenders review the building as well as the buyer. Owner-occupancy ratios and the share of units in arrears can affect loan approval. A lender familiar with condos can flag issues early.
Inspecting a unit
An inspector can review the unit and visible common areas, but the association owns the roof, structure and exterior. Ask about recent capital projects. See also where condo living is concentrated.
Frequently asked questions
What is a special assessment?
A one-time charge to owners for a project the reserve cannot cover. Ask whether any are planned or pending.
Can I rent my condo?
Check the governing documents for rental caps or minimum lease terms.
Sources
- Your local assessor, recorder or municipal office (confirm current rules)
- A licensed attorney, tax professional or lender for your situation
- The local MLS and your Northfield Realty agent for current market conditions
Talk with a Northfield agent
Whether you are buying, selling or just exploring, we are happy to answer questions. No pressure, just good advice.
This article is general information, not legal, tax or financial advice. Programs, rates and regulations change; please confirm details with a licensed professional. Northfield Realty is committed to the Fair Housing Act and equal opportunity in housing. Back to all articles.