My advice when out condo shopping is simple: ask as many questions as possible. Here are my top questions:
- What are the assessments or condo fees?
- What do the assessments pay for? What don't they pay for?
- Is the condo building self-managed?
- If the condo building is managed by a property management company, what is the company? (Do some research and find out if they are reputable.)
- How much money is in condo reserves?
- Are there any special assessments now or expected?
- Has there been any updating to the building, and if so, did the condo association do a special assessment or did they use funds from reserves?
- Are there any pending lawsuits against the association?
- Is there an outstanding condo association loan or debt?
Many first-time condo and townhouse buyers don't completely understand what they're getting into. It's not bad, but it is something that should be understood completely before signing the mountain of papers at the closing!
