10 Questions to Ask the Condo Board

Before you buy, Meet your Condo Board Association Members. In the meeting you will learn how organized the committee is responding to the needs of its members.

1. What percentage of units are owner-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the condo will upon reselling the unit.

2. What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place?  For Example renting may be an option only for those that are grandfathered in and not for those that bought after a particular date.  Read the bylaws carefull or you may hire a closing attorney to read the condo docs and review the master deed for you.

3. How much does the association keep in reserve? How is that money being invested? Does the condo have the proper reserves in place according to replacement value.  Has there been an assessment in recent years?  Or is there be an assessment pending?  If a condo has repeated special assessments this may mean they are not keeping up with replacement value.  Request last several meeting notes.

4.  Request last several meeting notes.

5. Are association assessments keeping pace with the annual rate of inflation? In the condo docs you may find how much a board can increase thier condo dues each year.

6. Review what the condo fees cover such as recreational areas, sewer, garbage, cable, exterior insurance etc..

7. How much turnover occurs in the building?  This could an indication of problems.

8. Request if there has been any litigation or if the builders or homeowners are involved in a current lawsuit, reserves can be depleted quickly.

9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about the construction of their home. Request an engineer’s report for developments that have been converted to determine what shape the building is in. If the roof, windows, and other exterior features are not in good repair it will be a problem of the association once you purchase.  See our due diligence report.

10. Are multiple associations involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you’re buying, may require separate assessments.  Therefore you need to ask these questions to both associations.