Pier 3 Condo

Any time you are making a large investment, you should ask a lot of questions so that you fully understand what you are getting into. I would like to discuss a few of the most important questions you should ask when looking into buying a condo.

*What ratio of the complex is ocupied my the units’owners? Most finance companies will be less likely to finance a condo if it’s complex is primarily occupied by renters rather than the unit owners. A good ratio is 2/3 owner occupied. You will usually not have problems financing with that ratio. Note that if it is difficult to get financing on a condo, it will not only affect you now in the buying stage, but also when you are selling.

* Have any special assessments taken place in the past 3 years? Will there be any large maintenance projects 12 months? Will the expenses be covered by reserves?

Unit owners and condo associations will have to deal with unexpected maintenance, but a good association plans ahead to make the condo fees enough to cover those costs. Multiple assessments indicate bad planning. It would be a shame to buy a condo from someone who paid minimal condo fees for years, and then you pay for a huge assessment as soon as you move in.

* Are there any disputes among owners that the Association is trying to resolve?

If unit owners are constantly having problems, you might not want to live in that atmosphere. Here are some problems commonly experienced:

Hanging stuff on the balcony. Most complexes don’t allow this in order to prevent people from hanging laundry and other things that could become hygienic problems, but often people make a fuss about little other things like small decorations.

Live in pets. Even in complexes let you keep pets, owners usually experience problems because a few owners’ pets are nasty and poorly behaved.

* Is the association in any lawsuits?

Many times the HOA can end up involved in lawsuits with owners, material providers involved in construction, or the occupants. You and your lawyer should discuss these suits.

* Is the HOA discussing any changes to the by-laws applied to the complex?

By-law changes can have an impact on your rights and enjoyment of the condo. You won’t get a vote until you purchase the unit.