Things to consider before purchasing a condo
Condominiums are a significant segment of the housing market in Florida. However, many prospective condominium purchasers are unaware of condominium concepts or the provisions of Chapter 718, Florida Statutes, the Condominium Act. Below is some important information that should be considered prior to making a purchase.PART ONE: THINGS TO CONSIDER BEFORE PURCHASING A UNIT
- What will be your ownership and voting rights in the association?
- What will be your percentage share of the common expenses?
- Are any special assessment coming up in the near future.
- When was the last insurance appraisal or valuation and does the condo have sufficient insurance coverage for the building.
- Review the budge.
- Determine if the reserves are properly funded.
- What are the restrictions on the use of the common elements and the unit?
- Are there any leases or contracts associated with the condominium association? If so, what are their terms?
- Do you understand all of the provisions of the documents?
- Exactly what items will you be personally responsible for maintaining?
- Is the condominium development completed? If not, how many units will eventually be added to the condominium development and what impact will they have on the use of the recreational amenities?
- What is the proposed schedule for adding units or amenities to the condominium?
- Does the developer have the option of not completing certain facilities or amenities?
- Does the association have a history of complaints by residents of the condominium?
- Is the association currently involved in litigation?
- Does the association carry adequate insurance?
- Is the condominium property well maintained?
- Has the association established reserve funds for future capital expenditures and deferred maintenance projects?
- Is the condominium being created a conversion, converting a previously occupied residential structure, what is the condition of the property and will major repairs be required in the near future?
- What is the history and reputation of the developer?
- Who is sitting on the board of directors
- What is the association’s pet policy?
- Are there any restrictions on the selling or renting units?
- Are there any restrictions on the number of family members or guests who may occupy a
In closing, Gather documentation and review any HOA rules.
Disclaimer: This article is for general informational purposes only and should not be construed as legal advice or a legal opinion on specific facts or circumstances nor a solicitation of legal business. You are urged to consult an experienced lawyer concerning your particular actual situation and any specific legal questions you may have. No attorney-client relationship attaches as a result of any exchange of information.