Condo Basics
Who manages the day-to-day operations of a condo community?
The condo association
What do condo fees generally pay for?
Maintenance of common areas, insurance, reserves.
What is an Executive Summary?
Cliff notes of the condo docs. A quick snapshot of key condo facts (fees, rules, lawsuits, etc.).
What is a non-conforming (non-warrantable) condo?
A condo that doesn’t meet standard lending guidelines.
What is a special assessment?
A one-time charge to owners for big repairs.
How many days does a buyer typically have to review condo docs?
Usually 10 days
What is a conversion condo?
A rental building turned into condos.
What loan(s) need approval for condo projects?
FHA and VA
What happens if a buyer doesn’t get condo docs in time?
They may cancel the contract without penalty
What is the main difference between owning a condo and a single-family home?
You own the inside of the unit and share the common areas.
What do lenders send to condo associations when someone is trying to buy?
Condo Questionnaire
Name two important documents buyers should review.
Declaration, Bylaws, budget, insurance, floor plan, rules & regs., meeting minutes, copy of floor plan, description of any expansion, project annual operating budget, any lease the owners will be part of after closing, proposed or existing management
What are the 3 types of parking given by condos?
Deeded parking
assigned parking
first-come, first served
Why do lenders view condos as higher risk than houses?
Because they’re tied to the whole building and condo association, not just one property.
What are 3 reasons to the executive summary is beneficial?
1) Saves time
2) Helps financing
3) Buyer confidence