The condominium association budgets and determines the condo fees for all units. Condo fees are typically determined by the size of your unit, how many units are currently occupied, and the projected expenses for building maintenance and repair.
Condo associations vary in their organization and expertise. Some questions you may want to look into are:
- Does the cond association maintain a reserve of funds to pay for unexpected and potentially expensive repairs? This will help you determine whether you are likely to get hit with special assessment fees.
- Has the condo association or HOA maintained the building in good repair? Do they handle repairs and maintenance before they become big problems? Before buying, it's a good idea to get an inspection done on the condo unit you're interested in, as well as the entire structure, to identify any potential problems.
- Does the condo association or HOA have plans to add any facilities, such as a swimming pool or gym, in the near future? This could cause a sudden increase in your fees or a liability of taking out an HOA Loan? Ask to see the minutes of the last few condo association meetings, which should reveal any such plans.
- Does the community association development have any pending legal actions? Are there any disputes between condo owners, with developers or with the condo association that you should know about?
- What is the condo association's reputation in the building? Talk to other owners for comments or complaints about the condo association's activities.
Learn about Master Property Insurance for Condo Associations
