November 24th, 2007 6:34 PM by Lehel Szucs
It is important to review all association documents before buying a Condominium or Townhome. Buyers who fail to take a close look at the association's rules and finances can be in for some unhappy surprises.These documents can contain everything from the operating hours of the laundry room to plans for major construction or pending lawsuits. If the potential condo buyer reads the document and doesn’t like what’s there, the law generally says he or she can walk away from the deal.Here are the some key questions a condo buyer should try to answer when reading through the association's documents:
Is the association charging residents enough to pay expenses without going into debt?
Is there a pattern of special assessments that may indicate poor financial management?
Is there sufficient money or a plan to get more money to pay for the projects specified in the reserve study? Buyers should compare the budget provided in the resale package against the expenses predicted in the reserve study and see if there appears to be enough money.
What do other residents and the management company think? Read the board minutes, which are maintained by the management company. Some companies charge a small fee for this service.