These documents can contain everything from the operating hours of the laundry room to plans for major construction or pending lawsuits. If the potential condo buyer reads the document and doesn’t like what’s there, the law generally says he or she can walk away from the deal.
"These statutes are built to give purchasers the information they need to make an educated decision," said Pia Trigiani, a lawyer at Mercer Trigiani, a firm that specializes in real estate transactions.
Here are the some key questions a condo buyer should try to answer when reading through the association's documents:
- Is the association charging residents enough to pay expenses without going into debt?
- Is there a pattern of special assessments that may indicate poor financial management?
- Is there sufficient money or a plan to get more money to pay for the projects specified in the reserve study? Buyers should compare the budget provided in the resale package against the expenses predicted in the reserve study and see if there appears to be enough money.
- What do other residents and the management company think? Read the board minutes, which are maintained by the management company. Some companies charge a small fee for this service.
Source: The Washington Post, Renae Merle (11/17/2007)
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