How To... in 19103>Question Details

Jin Young Kim, Home Buyer in 19103

How to check up on the health of the builder of a condo?

Asked by Jin Young Kim, 19103 Wed Feb 18, 2009

The condo complex (100 units) I'm considering buying into has sold only 50% as of this date (2/17/2009). I would like to verify the health of the developers to make sure they aren't going to go bankrupt before all the units get sold (which I imagine might take a while to do). How does one go about doing this research? Should I be hiring a real estate lawyer?

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For anyone else in this situation a buyer is entitled to a financial statement of the condo, a realtor or Attu or both,s help......second, check the public records for the developer for liens, suits etc.

It is important not that the developer does or doesn't go bankrupt but the financial health of the condo. What's the reserves? Delinquencies?

The other issue is lending. Always look to see if it's Fannie/Freddie approved. Also check if trident /wells/bank of America will do jumbos....if not think twice. Resale depends on these factors

As you mentioned earlier..an atty is always an option. I'd also recommend an agent with a lot of new construction experience. Having sold at 2200 arch, the ritz, the aria, the western union building and the symphony house...i have seen the gambit

Bruce Lang
Cold well banker realty
2157350700
2673126221 cell
0 votes Thank Flag Link Tue Dec 28, 2010
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