Taking Your Building Back To School
Our Building Doctors are on an educational mission! We'll fill you in on everything you need to do to take your building back to school, like the...
Buying a condominium is a major investment, and understanding the documents associated with it is crucial. Whether ...
Buying a condominium is a major investment, and understanding the documents associated with it is crucial. Whether you're still considering a purchase or have already moved in, knowing how to decode your CC&Rs and HOA rules can help you make informed decisions and avoid getting your dog taken away (no, seriously).
Take a minute to find all your condo docs and let’s break down what you need to look for, both before and after you sign on the dotted line.
Watch the webinar on this topic here.
Pre-Purchase Due Diligence Techniques
Before diving into the purchase of a condo, you should conduct thorough pre-purchase due diligence techniques to safeguard your investment. Here is our checklist:
1. Drive/Walk Around the CommunityBefore you even step inside the condo, take a drive or walk around the community. Look for signs of ongoing construction, like shoring, tarps, or patches on buildings. These could indicate ongoing repairs or structural issues that might not be fully disclosed in the paperwork. Seeing how well the community is maintained can give you an early insight into potential future expenses.
2. Ask for Key Documents
Requesting the right documents is a critical step in your due diligence. Ask for:
3. Have an inspector look around
Hiring a professional inspector to assess the property is an important step in the due diligence process. While your drive or walk around the community can reveal obvious issues, an inspector will provide a detailed evaluation of the condo's structural integrity, plumbing, electrical systems, and more. They can identify hidden problems, such as water damage, mold, or substandard construction, which might not be immediately visible. Their expert eye ensures you’re fully aware of the property’s condition before making your purchase, helping you avoid costly surprises down the road.
Understand All the Paperwork
Once you’ve purchased the condo, it’s time to dive deeper into the documents that will govern your life as a homeowner.
Here are the key ones to understand and read through:
This is the contract you signed to buy your condo. It outlines the terms of the sale, including the purchase price, closing date, and any contingencies. Keep this document handy in case any disputes arise after closing.
The bylaws define how the HOA is governed. They outline the roles and responsibilities of the board of directors, the process for electing board members, how meetings are conducted, etc. Understanding the bylaws can help you navigate the political landscape of your community.
You’ve seen these before, but now that you’re an owner, it’s important that you fully understand them. The CC&Rs are the backbone of the community’s governance, dictating what is and isn’t allowed. Violating these rules can result in fines or even legal action, so take the time to familiarize yourself with them. If you’re planning on making this new condo a short-term or long-term rental, think again…
These are supplements to CC&Rs and typically more detailed, covering the day-to-day expectations of living in the community. They might address things like noise levels, parking restrictions, or the use of common areas, etc. Knowing these rules can help you avoid conflicts with your neighbors and the HOA.
Conclusion
Decoding and understanding your condo documents isn’t just a formality, it’s a key part of being a responsible homeowner. Whether you’re still in the buying process or settling into your new home, taking the time to grasp these documents can save you from potential headaches down the road. But you don’t have to do it alone. If you’re feeling overwhelmed or unsure about any part of your condo docs, just schedule a call with one of our building doctors. We are here to help and equip you so that you can enjoy the condo life with happiness and confidence.
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