Things To Look Out for When Purchasing a Condominium.

When purchasing a condominium, especially in today’s regulatory environment, it is very important to learn as much as you can about the specific unit you are buying, the condition of the development and the condo association. Please see below some helpful hints when navigating through the process. Even though not all inclusive, and you should rely on you and your agent's due diligence, this will give you a good starting point to learning more about your purchasing a condominium.

Questions regarding the unit itself:

1. Were there any renovations done to the unit? If so, what and when?

2. If there were renovations, were permits that would be required pulled and closed? (This can be verified through the title company/lawyer doing a municipality lien search during due diligence phase)

3. What is the age of the air conditioning system (and water heater if in unit)?

4. Visually inspect flooring for imperfections.

5. Were there any water leaks in the unit, or into the unit from other units? Was there any intrusion of water into the unit from a storm?

6. How many Parking Spaces and their location (Verify space #(s) with Condo Association and again when reviewing Estoppel Letter that title company/lawyer will get from association). Are the parking space(s) deeded or exclusively assigned?

7. Guest Parking?

8. Any storage spaces assigned to unit?

9. What are the current monthly dues for the condo association (and Master if applicable)?

10. What appliances are included? Is there a stove vent hood and garbage disposal?

11. Obtain Seller’s Property Disclosure Statement and ask any additional questions needed.

IMPORTANT: When in the unit and on the balcony, look at surrounding area for vacant land and low-rise buildings that could be a possibility for future development that may impact/hinder the view in that specific unit.

Questions to ask the Condo Association (and Master Association if applicable):

1. Are there any planned improvements for the building or common areas? If so, what are they and have they been approved?

2. Are there any special assessments currently or are there any proposed assessments?

3. When was the last assessment and what was it for?

4. If the building is over 10 years old (or newer in some cases), has the building had concrete restoration, painting, lobby, hallways or other improvements done?

5. Are there any issues with, or planned repairs to, the Pool?

6. Is there any pending litigation or proposed litigation against or by the association?

7. Is there a proposed increase for monthly dues (verify monthly dues with condo management)?

8. What was the increase in dues from prior year? What was this increase primarily due to?

9. Are the reserves fully funded? How much are in reserves?

10. What is the approximate % of Renters vs Owners

11. What is the rental policy?

12. What is the pet policy?

13. What are the rules of the association?

14. Does the Association have a Right of First Refusal to Purchase a property?

Documents to get from the Seller's agent regarding the Condo Association, and Master, if applicable:

1. Current Copy of the Declaration of Condominium (including all Amendments), Articles of Incorporation, By Laws and Rules of the Association for the Condo Association (and Master Association if applicable)

2. Copy of the most recent Year-End Financials, including current year Budget, for Condo Association (and Master Association if applicable)

3. Frequently Asked Questions and Answers Document from the Condo Association (and Master Association if applicable.)

4. Governance Form

5. Milestone Inspection Report (if applicable and completed)

6. Structural Reserve Study

Also, you should ask for the board meeting minutes for the last 2 years to see if there have been any pertinent discussions.

We hope you find this information useful. Please let us know if we can ever be of help.

Kind regards,

Michael Candito, President/C.E.O.