10 Questions to Ask Your Condo Board

Before you buy, contact the condo board with the following questions. In the process, you’ll learn how responsive—and organized—its members are.

1. What percentage of units is owner-occupied? What percentage is tenant-
    occupied? Generally, the higher the percentage of owner-occupied units,
    the more marketable the units will be at resale.

2. What covenants, bylaws, and restrictions govern the property? What
    grandfather clauses are in place? You may find, for instance, that those
    who buy a property after a certain date can’t rent out their units, but
    buyers who bought earlier can. Ask for a copy of the bylaws to determine
    if you can live within them. And have an attorney review property docs,
    including the master deed, for you.

3. How much does the association keep in reserve? How is that money being
    invested?

4. Are association assessments keeping pace with the annual rate of
    inflation? Smart boards raise assessments a certain percentage each year
    to build reserves to fund future repairs. To determine if the assessment
    is reasonable, compare the rate to others in the area.

5. What does and doesn’t the assessment cover—common area
    maintenance, recreational facilities, trash collection, snow removal?

6. What special assessments have been mandated in the past five years?
    How much was each owner responsible for? Some special assessments are
    unavoidable. But repeated, expensive assessments could be a red flag
    about the condition of the building or the board’s fiscal policy.

7. How much turnover occurs in the building?

8. Is the project in litigation? If the builders or homeowners are involved in
    a lawsuit, reserves can be depleted quickly.

9. Is the developer reputable? Find out what other projects the developer
    has built and visit one if you can. Ask residents about their perceptions.
    Request an engineer’s report for developments that have been
    reconverted from other uses to determine what shape the building is in.
    If the roof, windows, and bricks aren’t in good repair, they become your
    problem once you buy.

10. Are multiple associations involved in the property? In very large
     developments, umbrella associations, as well as the smaller association
     into which you’re buying, may require separate assessments.