Buyer’s Checklist
Choosing a condominium is as much about choosing a particular condominium building or complex as it is about choosing a particular unit. So here is a checklist to use when examining your prospective condominium.
1. Ask other people in the building about living in the building and their experiences with building management.
2. Find out about any resale restrictions or restrictions on renting the property to tenants. Also look into the occupancy rate of the building, rental rates, and the amount of time that units spend on the market.
3. Look at the rules for occupancy and renovation restrictions. If you have or would like pets, make sure that they are permitted by the condo association rules. And if you think you will renovate the unit in the future, be sure that your prospective renovations will be permitted under the rules.
4. Look into the monthly association fee for the unit, projected fee increases, if any, and what is covered in the condo fee.
5. Ask about and pay attention to the noise level in the apartment. Is the unit adequately soundproofed? If it is a lower level unit, can you live with any noise from the street that you can hear?
6. Look into the cost of other facilities and options, such as storage units and parking. You may not expect to need them, but you may find your needs will change while you own the condo and you may want a place that offers this flexibility.
7. Look at all of the condo documents, including the condo association rules, bylaws, maintenance budget, reserve fund, and the insurance policy for the building. Also red the condo association minutes. You want to get as good a picture of the rules of the complex and the problems that the association and owners are facing as you can.
8. Find out if there any special assessments planned. If the building is older, then look into the life expectancy of the roof, heating and cooling systems, elevators, etc. Sometimes unit owners will hear rumors of large special assessments in the works, and it is best to do your own homework rather than rely on the sellers disclosing these rumors. If the association has a large reserve fund, there may be less to worry about, but it’s best to know before purchasing.
9. Before you buy, get a thorough inspection and ensure that all of the appliances work.
10. If you are buying a new condo from a developer, look into the prospects for completion by investigating the developer’s finances and experience. Check into the expected completion date of the unit and the consequences for delay by the builder. Also look into the consequences if you ultimately decide not to purchase the condo.