Once a contract on a condominium or a property in an HOA is ratified, the purchaser has three days to review the association’s documents, or condo docs, once they are delivered.
If within those three days, the buyers see anything that they simply cannot live with, they have the right to void the contract and their full earnest money deposit is returned.
We know — as a buyer, reading the entire packet can seem daunting! But do plan to review the condo docs as closely as possible. Here are the three key areas you’ll want to make sure you review in detail.
This is the big one. Review the condo association’s rules and restrictions and decide if you can live with them. Are pets allowed? Can you have a grill on the balcony or patio? Are there any rental restrictions? Can you make changes to your unit? You’ll want to make sure you read through all the rules in detail to make sure there isn’t a dealbreaker.
The Budget/Reserve Fund
You’ll want to read through this section carefully. Does the condo association have adequate savings for major repairs? Typically such projects include roads, roofs, fencing, swimming pools and decks, sidewalks, and clubhouses. If there isn’t enough money in the reserve fund, then the association may impose a special assessment on the owners to cover the cost of the repair. This could be a chunk of money on top of what you already pay in condo fees monthly.
Reading the association’s meeting minutes is a great way to get the inside scoop on the community! You’ll want to scan them to see if there has been an ongoing discussion about a particular repair, complaints, etc.
If you have questions, you will want to contact the condo association for clarification on any potential issues or questions. Often, the condo staff can only be reached during business hours, so be careful if your condo docs review period is up on a weekend. Be sure you choose an experienced Realtor who will ensure sure you stay on target and can negotiate other options if an issue arises and you cannot get in touch with the association.
To discuss further or if you have any questions on buying or selling a condo, please don’t hesitate to get in touch. We are always happy to help!