If you’re entertaining the idea of purchasing a condominium, here are a few things you’ll want to know before you sign anything:
- The information about the association’s activities and operations that buyers are entitled to receive will vary from state-to-state. Make sure to ask any questions you have, and obtain any information you can about the association before the sale closes. You’ll want to know what you’re getting into.
- Make sure that all the rules, regulations and bylaws are up-to-date. If not, it’s always possible that they can be updated in the future in an unsatisfactory way, and you’ll be stuck with it.
- Ask for the budget reports for the previous year, current year, and upcoming year from the association. If you’re financially savvy, you can pour over the documents and make sure the budget is sound. If not, make sure to get a financial advisor who can take a look at it.
- Every year, associations will receive an accounts report from a CPA that details the association’s financial situation. Pay very close attention to the details, as any concerns the CPA has with the association’s finances will be listed here.
Purchasing a condo that’s covered by a well-managed association should be your primary goal. The location, price and aesthetics of your condo will seem far less important to you if you find yourself stuck with an inept association.