In the District of Columbia, like many jurisdictions, condo buyers get a little extra time after their offer is accepted to look at the basic documents that cover the money stuff and the basic ground rules set down by the owners’ association they are buying into.
These papers cover
Still, it’s really important to go over these papers before you are obligated to buy the place.
Will your hyper-active Labradoodle puppy be welcome in the complex? Can you run a small business out of your unit? Do they require carpet on top of the pretty hardwood floors? Can you install a washer/dryer in your unit? Is it OK to barbecue on the balcony? These and other questions about the ground rules of the building are found, yes in the rules and regulations section.
Will the fees go up? The answer to this question is always a resounding "YES!" Still, you want an idea of the financial health of the complex. Are any big fix-up projects on the horizon, and is there money in a reserve fund to pay for them? This information should be in the budget, but you’re more likely to get the full scoop from the recent owners’ association meeting minutes.
Is anyone suing the building, or is the building involved in litigation, either with the builder/developer or deadbeat owners who aren’t paying their fees? Some buildings have the dispute resolution thing down and have learned to work out problems without lawyers. Others resort to litigation at the drop of a hat – an expensive way to handle most day-to-day problems. In DC, the resale “statement” will answer this question.
Any condo project will have issues.
These papers cover- The budget
- The rules and regulations
- The by-laws governing the association
- Information about pending litigation, fees and pending special assessments
- While not required, I recommend that buyers also request the minutes of the last several board meetings and check out the building’s web site (if they have one).
Still, it’s really important to go over these papers before you are obligated to buy the place.
Will your hyper-active Labradoodle puppy be welcome in the complex? Can you run a small business out of your unit? Do they require carpet on top of the pretty hardwood floors? Can you install a washer/dryer in your unit? Is it OK to barbecue on the balcony? These and other questions about the ground rules of the building are found, yes in the rules and regulations section.
Will the fees go up? The answer to this question is always a resounding "YES!" Still, you want an idea of the financial health of the complex. Are any big fix-up projects on the horizon, and is there money in a reserve fund to pay for them? This information should be in the budget, but you’re more likely to get the full scoop from the recent owners’ association meeting minutes.
Is anyone suing the building, or is the building involved in litigation, either with the builder/developer or deadbeat owners who aren’t paying their fees? Some buildings have the dispute resolution thing down and have learned to work out problems without lawyers. Others resort to litigation at the drop of a hat – an expensive way to handle most day-to-day problems. In DC, the resale “statement” will answer this question.
Any condo project will have issues.
- At some point, fees will increase.
- From time to time, there will be special assessments.
- There will be problems with some owners who do not respect the rules everyone agrees to live by.
Posted Wednesday Mar 26
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Here, the seller orders the whole packet for the buyer...our contract lists all pertinent ones and a space to add in ....'all printed documents for the complex and association. It's a stack....a big stack.
I'll peruse a set of those guidelines the next time I wake up at 3am and can't get back to sleep! Good post to remind folks to read the fine print.
Patricia,
Good idea! In fact it's never a bad idea to review all pertinent documents before closing!!! Thanks, Fran
Patricia - these docs are always a book! It is enough to make you want to NOT buy a condo!
Sally, "all printed documents" would be totally overwhelming around here! That would include newsletters, meeting minutes, correspondence and whatever else anyone thought to write down. Yikes! Kill a tree!
Andrew, I can fall asleep with a good book over my face!
Fran, it's certainly better than a post-settlement review!
Barbara Jo, around here, it's not just a book, but it's a tome!
Pat, I don't have kids but when I do, I imagine that the easiest way to help them fall asleep would be by reading condo documents to them at bedtime.
Brian, I have a friend whose mother was a Shakespearian Actress. She read her children MacBeth as a bedtime story. They are wacko adults and think it was the bedtime stories that did them in!
Pat, great advice! These rules apply to Homeowner Associations in subdivisions, too, which we have a lot of here in Kitsap County.
When I am the listing agent for a condo I always ask the sellers to update the documents from the association and/or management company. You'd be surprised how many "updates" are now in force and the sellers tossed out the one page letter that came to their homes.
It's amazing how many buyers don't actually read this information before buying. It is given to them or made available to them per the contract, but they don't take the time to read it. Then of course, they complain later when they can't fire up the barbeque. :)
Great reminder. Recently, my seller forgot to disclose an assessment and almost lost a sale. We worked it out that his above asking price offer became a full asking price offer and everybody was happy!
I always the OLD condo complexes that have copied copies for years and you can barely read 1/2 of them! Thats always lovely!
Hi Pat, Thats really great advice. I do agree with you.