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Buying real estate which is a part of an attached or otherwise grouped housing complex carries with it a wide variety of topics for consumer study. In addition to purchasing a dwelling unit, you also purchase a share of common facilities, which sooner or later will be subject to unknown maintenance and expenses. For that reason the following checklist should be carefully examined and each category explored for appropriateness to the property you are considering for purchase.
Common Facilities
Roads
Grounds
Parking areas
Concrete foundations, walks, spiIIways
Clubhouses
Roofs, exteriors, maintenance areas
Hallways, lobbies
Swimming pools
Rules and Regulations
Guest privileges
Architectural control
Children, pets
Parking
Boats, trucks, trailers
Renting to others
Property Owners Association
Check current by-laws
Meeting schedules
Responsibilities of property owners
Dues/fees
Financial condition of Association
Recreational services
Project History
Relationship with community
Relationship with suppliers, purveyors, and subcontractors
Financial performance
Reputation of Developer Property Management
Vacancy rates
Resale performance
Obligations of developer to property owners association
Obligations of developer to lenders, municipality
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Acquisition & Ownership
Buyer screening practices
Escrow of buyer deposits
Construction scheduling
Board of directors membership
Specific assessments
Insurance
Appraisals, inspections, lender approvals
In addition to all of the above considerations, there are two important, critical reminders when purchasing real estate involving property owners' associations. First regardless of the price you pay or the value of your property, you will always have limitations imposed upon you. For this reason it is critical to participate in the association's meetings and management.
Second, you will be responsible for expenses and liabilities incurred by the entire complex and association management, As a consequence, be certain that adequate financial reserves and prudent management practices are in place to reduce that over which you have no control.
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