Condo Due Diligence

27 Apr

Metro®Boston, Publication Date: April 25, 2012
By Attorney George Warshaw

Expanded Content:

Buying a condo? The condo market has heated up. Do you know what to look for – or look out for? Here are a few of the things that you should consider or ask about:

The Budget.

  • Is the budget adequate to cover the operating costs or running at a deficit?
  • Are any Unit Owners more than 30 or 60 days in arrears in monthly payments?
  • Are there any sharp increases in specific expense items?


  • Do reserves meet the Fannie Mae minimums (10% of budget + separate insurance deductible)?
  • Are reserves for improvements and major repairs sufficient?
  • Have there been major increases or decreases in reserves or expense items over time?

Repairs, Improvements and Assessments

  • What repairs are presently planned?
  • Any special assessments or improvements currently in effect, planned or being discussed?


  • Is the association involved in any litigation?


  • How many units are owner-occupied or rented?
  • Have there been any sound and noise complaints?

Condo Docs:

  • Verify parking rights, locations and space numbers.
  • Review recorded condo plans. Do they match the present layout of the unitt?
  • What exclusive use rights are assigned to the unit? Who pays for repairs/maintenance for exclusive use areas?
  • Are there restrictions on pets?
  • Are there limitations rentals?

Board of Directors and Unit Owners Meeting Minutes

  • Do the minutes indicate upcoming major repairs, improvements that could result in a special assessment?
  • Do the minutes indicate upcoming increases in fees or charges?
  • Do the minutes indicate problems that you should know about?

My view: ask for two years worth of minutes.

Call or email me if I can be of help in buying or selling your condo, or if you have questions you need answered., 617-262-7800.

 © 2012 George Warshaw.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at


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