Get to know the neighbors before you buy a condo
SEATTLE -- More "sold" signs are going up on local condominiums on the market.
Condo sales have been on the rise since march, giving new buyers their first experience with condominium associations.
Condos offer the benefits of home ownership without all the maintenance and repair work. The condo association takes care of all that. Unfortunately, that's where many condo buyers drop the ball.
Seattle attorney James Strichartz, whose practice centers on condo and homeowner association issues, says the typical condo buyer has no idea that buying a condo means buying into a multi-million dollar partnership "with people who they don't know, may have nothing in common with, run by a volunteer board of directors."
Common disputes? Unexpected assessments, pets, rental restrictions, maintenance and repairs. Disputes also arise over noise, parking, and construction defects -- issues you can't always find out by walking through an open house. You have to ask the right questions.
"It's important for buyers to understand what the rules and restrictions are," said Strichartz.
Before you buy, ask about all the rules and restrictions.
Strichartz recommends prospective buyers review the board minutes for the last two years to get insights in to what's really going on.
Talk to neighbors in the complex. What do they think about how their homeowners association is being run. Is the board stable, with a good rotation of officers? Are the neighbors friendly or at least cordial- or do the give you the cold shoulder? Do they appear to like living there or seem guarded about what they say?
Check out the neighborhood and talk to surrounding neighbors. If there are retail businesses in the building, visit the businesses and talk with them about the building.
And be sure to review the association's reserve study. Every association is required to have one. A reserve study looks at how much cash should be on hand to take care of future repairs and maintenance. Inadequate reserves are your first tip-off that you could be hit with a big surprised assessment down the road.
"I've seen people who buy into condominiums, totally unaware that coming down the road is a five-figure special assessment." said Strichartz.
In many cases the homeowners association will hire a professional management company to keep track of finances and administrative matters. In other instances, the board chooses to handle the administrative themselves. This is all information you need to know.
Finally, just like with a house, have the condo inspected by a qualified, independent home inspector who knows what to look for.
After you buy, stay involved with the homeowners association and pay attention to what's going on. Go to the meetings. Read the minutes, consider running for a position on the board.
These guidelines apply to any homeowners' association where a small group of owners makes decisions and enforces policies that affect the entire community.
For more information:
Condominium act
About Community Associations Institute
Understanding Homeowners' Associations and CC&Rs
Condo sales have been on the rise since march, giving new buyers their first experience with condominium associations.
Condos offer the benefits of home ownership without all the maintenance and repair work. The condo association takes care of all that. Unfortunately, that's where many condo buyers drop the ball.
Seattle attorney James Strichartz, whose practice centers on condo and homeowner association issues, says the typical condo buyer has no idea that buying a condo means buying into a multi-million dollar partnership "with people who they don't know, may have nothing in common with, run by a volunteer board of directors."
Common disputes? Unexpected assessments, pets, rental restrictions, maintenance and repairs. Disputes also arise over noise, parking, and construction defects -- issues you can't always find out by walking through an open house. You have to ask the right questions.
"It's important for buyers to understand what the rules and restrictions are," said Strichartz.
Before you buy, ask about all the rules and restrictions.
Strichartz recommends prospective buyers review the board minutes for the last two years to get insights in to what's really going on.
Talk to neighbors in the complex. What do they think about how their homeowners association is being run. Is the board stable, with a good rotation of officers? Are the neighbors friendly or at least cordial- or do the give you the cold shoulder? Do they appear to like living there or seem guarded about what they say?
Check out the neighborhood and talk to surrounding neighbors. If there are retail businesses in the building, visit the businesses and talk with them about the building.
And be sure to review the association's reserve study. Every association is required to have one. A reserve study looks at how much cash should be on hand to take care of future repairs and maintenance. Inadequate reserves are your first tip-off that you could be hit with a big surprised assessment down the road.
"I've seen people who buy into condominiums, totally unaware that coming down the road is a five-figure special assessment." said Strichartz.
In many cases the homeowners association will hire a professional management company to keep track of finances and administrative matters. In other instances, the board chooses to handle the administrative themselves. This is all information you need to know.
Finally, just like with a house, have the condo inspected by a qualified, independent home inspector who knows what to look for.
After you buy, stay involved with the homeowners association and pay attention to what's going on. Go to the meetings. Read the minutes, consider running for a position on the board.
These guidelines apply to any homeowners' association where a small group of owners makes decisions and enforces policies that affect the entire community.
For more information:
Condominium act
About Community Associations Institute
Understanding Homeowners' Associations and CC&Rs
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