Surprises in real estate investments are rarely a good thing. When you buy a condo, you want to be sure that you have covered all your bases in vetting the property. Before buying a condo, here are some questions to ask to ensure that you have fully covered all your bases before signing the purchase agreement.
What Is the Budget for the Condo Association?
When you buy a condo, you are not only buying your own living space, you are buying into the entire building. If repairs need to be made, such as a new roof, it can have an impact on everyone living in the condo if there is not enough money in the condo association's budget for it.
Before signing on the dotted line, you need to find out how much is in the condo association's budget and how those dollars are allocated. The association should have a basic information packet that provides you with the details of the budget and what you can expect regarding funding in the future.
What Is in the Condo's Insurance Policy?
Part of the condo association's responsibilities is carrying insurance for the building. What is covered under the insurance policy that the association has can vary.
Find out what is covered by the condo's policy by asking for a copy of it. Review the policy with your own insurance agent or real estate attorney. By knowing what is covered, you can determine what level of coverage you need to protect your particular condo.
Are There Any Lawsuits Pending Against the Property?
Although you were not present when the lawsuit was filed against the property owner, the outcome of the litigation could have an impact on you. To offset the costs associated with its legal woes, the condo owners and association could choose to raise its fees.
Depending on the nature of the litigation, the resale value of your condo could also be impacted. Instead of being able to sell your condo at a profit, you could end up losing money due to circumstances that were out of your control. By knowing ahead of time, you can make a decision of whether or not you want to continue with the purchase.
Consult with your real estate agent to determine what other questions you need to ask before agreeing to purchase a condo. The agent can help you narrow your focus and pinpoint problems with the answers you receive when discussing the purchase of a condo with an owner.
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22 July 2016
After my wife and I realized that we wanted to buy a house, we started saving like crazy. We skipped meals out with friends, wore older clothes for awhile, and put off family vacations. However, when we finally had enough money saved, we felt ready to buy the house of our dreams. However, finding that perfect paradise was a little more difficult than we anticipated. To help us to find the right place, we worked with a great real estate agent. This blog is about working with a broker to find a place you and your family will love forever.