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I want to buy a condo, but can't access condo association financials

Posted on Thu, Sep 03, 2009 @ 08:00 PM
  
  
  
  

The property management company is not forthcoming and I assume there are financial difficulties.  I am a first time home buyer - but wish to push the envelope to try to see where things stand - because really want this unique condo unit.
 
Is there a place to see budget, minutes of the condo meetings and other info helpful info?  I know they might be missing insurance - and want to find out exactly what is going on and if/how it will be remedied or if there is a possibility going to receivership - and or how many foreclosures in bldg can you please advise if there is a place to look or how to do research?

Answer: Unfortunately, you can only get a condo association's financials if someone involved with the association provides them to you.  I would suggest you contact the seller of the condo unit or try to identify members of the condo association board.  There is no easy way to find out if the condo association insurance is paid for.  You can call your country registry of deeds and find out if there are any liens against the condo units in the building by the condo association. 

Generally speaking, if no one wants to provide financials you should walk away for the condo unit, even if you're emotionally attached.

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COMMENTS

If you are applying for a mortgage, ask the mortgage companies you are applying to, what their appraisers require from the condominium association. Chances are you will only get a mortgage, if the condominium association is in good standing financially. If this doesn't answer your questions, I would talk to an attorney. Good luck.

posted @ Friday, September 04, 2009 8:11 AM by Nancy Shaw


In VA you have 3 days to look at the disclosure package and decide from there. Financial documents, minutes, and proof of insurance have to be in the disclosure package and if for some reason they are not then you should definitely walk away. I would hope other states would have similar laws. You can make an offer and make it contingent upon review of the association documents to include minutes and financials (as well as the By-laws and rules and so forth). That way you have an out if they are not good. But, make sure you understand what you are looking at; many people do not including current condo owners. And remember that each association is different and it can be difficult to compare condo association A to condo association B.

posted @ Friday, September 04, 2009 8:32 AM by Courtney G


If you are in California, ask the seller to execute a form authorizing you to seek the information on the seller's behalf, or ask the seller to provide the information. There will be a cost attached. Are you willing to pay for the info? The seller should have received it and should have the budget and financials for the past year. HOAs are required to provide it to owners. As someone else said here, if no one is forthcoming with info, it't not a good sign.

posted @ Tuesday, September 08, 2009 8:43 AM by Califcondoguru Beth Grimm


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