Home Buying in Annapolis>Question Details

Puffy, Home Buyer in Annapolis, CA

What documents should I ask to see before buying a condo?

Asked by Puffy, Annapolis, CA Thu May 26, 2011

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Mansur has some great advice (so I gave him a thumbs up), but I also wanted to add the below because I feel you will find it useful.

I do not know Rebecca Law personally, however I came across a blog article she wrote on HOA documents and how to evaluate an HOA. It was one of the best written informational pieces on HOA's & condo's I've ever come across. Granted it is regarding Minnesota HOA's, but a majority of the information is applicable to HOA's everywhere.

The importance of certain HOA docs:
http://www.rebeccalaw.net/2010/decode-hoa-docs/

Evaluating an HOA (9 part series, each part is a short read and is packed with pertinent information):
http://www.rebeccalaw.net/2010/hoa-xray-part-1/
2 votes Thank Flag Link Fri May 27, 2011
Ask for the Master Insurance and HO6 policy for property. Also request for a Condo Questionnaire, as well as the Minutes and Financials. In order for any buyer, to qualify for a loan, the HOA must be solvent. If not, the loan will not be approved.

I hope this answers your question.
0 votes Thank Flag Link Thu Aug 9, 2012
Hi Puffy,

You will want a complete and current condo re-sale package but this usually comes after your are under contract. Prior to writing the contract you will want to know (i) has the condo association been approved for your type of loan (ii) are there adequate reserves for the condo that meet your lending guidelines and; (iii) are the owner occupant to investor ratios in line for your type of loan. Your lender should be able to check this for you using contact information for the Condo that should be provided by the listing agent.

You'll also want to check to see if there are any "deal breaker" rules for you such as pet restrictions.

Great question to ask since a non-solvent condo association can shut down a transaction!
0 votes Thank Flag Link Fri May 27, 2011
The condo docs that should come with the resale package usually cover a lot of what you need. Some of the things pointed out by David Cooper are good to know and not often included in the condo docs. I provided a link that describes what to look for in the condo docs. They tend to be very large documents that can be hard to make heads or tails of.
Web Reference: http://dchom.es/lpDgRm
0 votes Thank Flag Link Thu May 26, 2011
Find out the percentage of owners vs investors, the number of vacancies, any letigation problems, see how well funded the HOA is, ask if there is any major repairs (roof, air) anticipated in the next 5 years, ask if the HOA is expected to go up and by how much.

David Cooper! Las Vegas Foreclosure Investor in Bank Owned REOs at 20% off. For Freee Daily List email davidcooper@lasvegaswinner.org or Call +1-7024997037
0 votes Thank Flag Link Thu May 26, 2011
Puffy,
Association rules, regulations, and restrictions. Certificate of insurance. Verification of monthly assesments, and see a paid up letter from the association that the current resident is up to date. Some of this does not need to be done up front but shold be requested prior to closing on your unit.

All the best,
Gary Geer

http://www.GaryGeer.com
0 votes Thank Flag Link Thu May 26, 2011
It sounds like you do not intend to use a Realtor to represent you. If you did, you wonldn't have to ask this question. A Buyer's Agent is paid for by the Seller, (free to you) so why wouldn't you want to do that? Do you do your own heart surgery too?
0 votes Thank Flag Link Thu May 26, 2011
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