8 Must Ask Questions For Condominium Buying Success

May I have a copy of the Master Deed, Unit Deed and Bylaws? The Master Deed, unit Deed and Bylaws will let you know exactly what you own and what you are responsible for, what you can and cannot do. Something's to look for are pet restriction, parking and rental restrictions. If something is important to you make sure you can do it. For example, some com-plexes will not allow you to install satellite dishes or let you rent your unit.

May I see two years of the association's meeting minutes? Many associations meet monthly or bi-monthly. The minutes will clue you in to what people are complaining about and if there are any major repairs coming up.


What is this years budget and how much is in the reserve fund? You will get a statement with the prior years budget and a pro-forma budget for the current year. See if the association has been running a deficit or a surplus. There should be at least 10% of the yearly's budget in reserve to help cover unexpected costs and repairs. If something doesn't seem right to you, ask questions.

What is the past 5 years history for special assessments and condo fee increases? This will give you an idea of how well the association is doing financially. If condo fees are low but they are constantly levying special assessments it means you could be looking at future assess-ments of several hundred to several thousand dollars. Make sure condo fees are keeping pace with inflation.

Are there any future special assessments coming up or have been discussed? You certainly don't want to move in and be surprised with a special assessment right away.

How many units are investor owned and how many are owner occupied? Complexes with a higher rate of owner occupancy tend to be more marketable. Also, if the ratio of investor owned becomes to high, it can pose a problem in conventionally financing a unit, possibly ef-fecting resale.

Is the association is currently involved in any litigation?-Nothing can eat up reserves more than a lawsuit. This is never a good sign.

What is the delinquency rate on association fees? This tells you if everyone is pulling there weight financially. Typically you don't want to see more than a 10% delinquency.

What is the turnover rate? This gives you an idea if people are happy or not. Average turn-over should be about 7%.