Never mind the housing
crisis and the mortgage mess and the market glut.
The more affordable prices may convince you it's a good time to buy a
condo. To avoid problems later, experts say, before signing a contract,
always research the state of the propertyand its association.
Here are some of their tips:
Know what you're buying into. Research the community. Look at
the condition of the property. If possible, rent and live there for six
months before you buy.
"Drive around and
ask other residents questions," said Bill Raphan, supervisor at the
state Office of the Condominium Ombudsman in Fort Lauderdale. "How
is the place? How are the board of directors? Do they keep the property
nice? Do they answer questions?"
Check out the condominium's financial stability. Ask to see the
most recent financial statements and the budget. How much is in
reserves? What about insurance costs? Associations are not required to
turn over financial documents to prospective buyers. Your best source
for this information is the seller.
"From a financial standpoint, that is more critical than ever
before," said attorney Dennis Eisinger, of the Hollywood firm
Eisinger, Brown, Lewis and Frankel. "If they don't give it to you,
I think you should assume the worst."
Another red flag: How many units are in foreclosure?
A real estate attorney should be able to run a title search on all of
the units to see how many foreclosures are in place.
Carefully read the condominium documents BEFORE you sign a
contract. Check for restrictions on everything from pets to children,
renters, parking, even signs.
"When you buy into a deed-restricted community with covenants,
restrictions and rules, you are contractually agreeing to be bound [by
those] restrictions," said attorney Gary A. Poliakoff at the Becker
Poliakoff firm.
Ask about maintenance costs, fees and special assessments.
Owners are responsible for sharing the costs.
Understand the type of common-interest ownership community that
you are considering, whether it's a condominium, cooperative or planned
development governed by a homeowners association, said Poliakoff.
Are you comfortable living in a condominium environment?
"Let's face it, there is no way to control the level of smells and
sounds that permeate the walls of shared ownership communities,"
Poliakoff says. "Be it garbage, ethnic foods, cigar or cigarette
smoke, what will be to some delightful will be deemed a nuisance by
others."
For information from the state Condominium Ombudsman Office, call
954-202-3234. Classes are available at Broward College in Coconut Creek
on serving on a board of directors; condominium rules and regulations;
and condominium elections. For information or registration, call
954-201-7800.