HOA Purchase Questions

1. Verify whether you have storage space and parking: Many things can change from buyer to buyer and sometimes the storage and parking can be exchanged and even given to other tenants. It is important these questions are asked about the space or sometimes it can slip by without being noticed.

2. Owner Occupancy: It is important to know whether there are multiple owners of the Condominiums you are looking to purchase, because it can affect the bank on your purchase. The best situation is that there are at least 75% of owners occupying the units, otherwise, the banks may look at it like an investment and the financing rates change.

3. Homeowners Meeting Minutes: This should be asked to both the listing Agent and on the Optional Clauses Addendum. This will tell you about the building assessments and lawsuits going on in the last 2 years.

4. Resale Certificates: Shows all rights and restraints such as, right of refusal/restraints on alienation. Basically, everyone in the units get first right of purchasing before the public is offered the opportunity. Assessments, which are monthly dues such as upkeep of building, etc. All delinquencies, fees and fines, anticipated repairs in the future (short/long term). Judgments and suits, pending suits, leases etc. (see condo resale certificate in packet).

5. Stop in and talk to neighbors and call local Police/Fire Department: It is amazing how much information you can find about the neighborhood. This will also help you make up your mind on the Condominium and area you are interested in.

6. Conversion question: Have the floors and ceilings been modified to handle noise issues better.

7. What are the rules surrounding pets? Have there been discussions in the Home Owners Association about making any changes to the pet rules?

8. Ask for a copy of the CCR’s (covenants, conditions & restrictions)? These are the written rules for the buildings occupants. Also, in new construction a builder will present a suggested CCR’s document to the new Home Owners Association for approval.