Before you buy, contact the condo board with the
following questions. In the process, you’ll learn how
responsive—and organized—its members are.

1. What percentage of units is owner-occupied? What
percentage is tenant-occupied? Generally, the higher the
percentage of owner-occupied units, the more marketable
the units will be at resale.

2. What covenants, bylaws, and restrictions govern the
property? What grandfather clauses are in place? You
may find, for instance, that those who buy a property
after a certain date can’t rent out their units, but buyers
who bought earlier can. Ask for a copy of the bylaws to
determine if you can live within them. And have an
attorney review property docs, including the master deed,
for you.

3. How much does the association keep in reserve? How
is that money being invested?

4. Are association assessments keeping pace with the
annual rate of inflation? Smart boards raise assessments a
certain percentage each year to build reserves to fund
future repairs. To determine if the assessment is
reasonable, compare the rate to others in the area.

5. What does and doesn’t the assessment cover—
common area maintenance, recreational facilities, trash
collection, snow removal?

6. What special assessments have been mandated in the
past five years? How much was each owner responsible
for? Some special assessments are unavoidable. But
repeated, expensive assessments could be a red flag about
the condition of the building or the board’s fiscal policy.

7. How much turnover occurs in the building?

8. Is the project in litigation? If the builders or
homeowners are involved in a lawsuit, reserves can be
depleted quickly.

9. Is the developer reputable? Find out what other
projects the developer has built and visit one if you can.
Ask residents about their perceptions. Request an
engineer’s report for developments that have been
reconverted from other uses to determine what shape the
building is in. If the roof, windows, and bricks aren’t in
good repair, they become your problem once you buy.

10. Are multiple associations involved in the property? In
very large developments, umbrella associations, as well
as the smaller association into which you’re buying, may
require separate assessments.

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