Our firm has assisted with several condominium real estate transactions, which generally involves their own unique set of considerations. Here, we share 5 tips for potential buyers seeking to purchase a condo unit.
1. Review the Condominium Association’s Governing Documents.
Every Florida condominium is governed by a Declaration, Articles of Incorporation, and Bylaws, and Rules and Regulations. These documents govern your relationship with the Association and establish your rights and duties as a unit owner. Your governing documents also provide important information concerning your association’s operation, including association meetings, voting requirements, annual budget, maintenance fees, and much more. Some associations prohibit pets or rentals. The governing documents greatly affect how you use and enjoy your new property. Violating the association’s governing documents may result in fines and perhaps a lawsuit.
2. Know Your Maintenance Responsibilities.
Many prospective condo buyers believe that their maintenance responsibilities are limited to the inside of their unit. This is not always true. Depending on the association’s governing documents, unit owners may be responsible for exterior terraces, patios, balconies, sliding glass doors, and windows. Potential condo buyers should know the full extent of their maintenance obligations prior to purchase.
3. Ask About Regular and Special Assessments.
Regular assessments, also known as monthly maintenance fees, are standard for condominium associations. However, special assessments can also be imposed to fund a major project, such as balcony repairs or improvements. Prior to purchasing a condo, potential buyers should ask whether the association’s board expects to levy any large special assessments. Requesting and reviewing one year’s worth of meeting minutes is also helpful to see what projects may be coming up and to avoid any surprise special assessments after closing.
4. Determine Your Parking Space.
Condominiums are notorious for parking issues. Many associations actually own the parking spaces and can randomly reassign parking spaces at their discretion. In other instances, new condo owners may realize too late that the previous owner sold the parking space to a third party. It is prudent to obtain parking documentation, like the original assignment, prior to closing. The same applies to other appurtenances, like boat slips and storage spaces.
5. Pay Attention to the Rules and Regulations.
Condo boards often impose rules and regulations concerning the use of the condominium property. For example, some associations prohibit portable grills on balconies or impose strict hours of operation for certain amenities, like the pool or gym. Make sure you fully understand and are comfortable with the rules prior to purchase because they will greatly affect how you use and enjoy your new property.
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