Thinking of investing in a condo? As a potential condo buyer you have significant due diligence to complete prior to close. After all, you are not just buying one dwelling; you are buying into an entire project. Here are some questions you must have answered prior to purchasing a condo:
What are the condo rules and regulations?
It’s the seller’s responsibility to provide a full set of condo docs and financial data. In Florida, you have three days to review these docs, and you can void the contract if you deem necessary.
What is the monthly condo fee and what does it include?
This fee is derived from the association’s annual expenses combined with capital reserve requirements.
How much is in the capital reserve account?
This account will pay for inevitable repairs or renovation of the building. It should be at least 10% of the annual budget.
Are there any pending special assessments?
These assessments pay for capital improvements, and each condo owner pays a share.
Who manages the association?
It is better if the association is managed by a professional company. Talk with the CAM (condominium association manager).
What does the master insurance policy cover?
The association insures the building; the owner purchases an individual policy to cover contents and the interior of the unit.
Are there any pending legal actions?
Legal disputes can really affect the financials for an association by imposing a special assessment and/or raising fees.
As your real estate team, we will make sure these questions are answered. The transaction deserves and requires a team effort. We would love to be on your team to ensure seamless real estate acquisitions. Got questions? Let us know.