December 1, 2016 | Condos

Things to Know Before You Buy a Condo

Buying a condo can be a very different process from buying a house. There are many different rules and regulations that come along with purchasing a condo. So even if you’re a pro at buying houses, you may want to give this a read before you buy a condo.

Things to Know Before You Buy a Condo

  1. Possibly the most important, get a status certificate and review it carefully! There are sometimes regulations in the status that the untrained eye may pass over that could cause you a lot of grief. Therefore, it is always best to make the offer conditional upon your lawyer reviewing the status.
  2. Check the rules on pets because every condo is different. Some may welcome them with open arms, while at others you may be lucky to even be allowed a fish. Some restrict based on the type of pet, weight or the ability for them to be carried in the common areas. If you have a pet or plan on getting one in the future, it is important to know the exact rules.
  3. Make sure there aren’t any specific work orders against the unit you are considering. If the previous owner added an awning or washer/dryer that was breaching the rules then you may be responsible for solving these issues. You may have to remove them yourself or the condo corporation may remove them and charge you.
    If you’re buying the condo as a UOG student rental, there are some condos that have rules such as only allowing two students in one unit.
  4. Reserve fund. Check that there is enough money in the reserve fund to cover ongoing maintenance. If the reserve fund is low and the window and roof are old, you can count on your monthly condominium fees increasing.
  5. Make sure you understand the insurance policy. Building insurance doesn’t cover your personal items or condo improvements. For example: You spend $80,000 completely gutting the kitchen and bathrooms in the condo and a while later the condo burns down. They will pay to restore it back to how it was originally without any of your upgrades. You are now out $80,000 + the cost of all your personal possessions. Therefore, it is important to understand what the insurance covers to make sure you protect yourself. You will want to purchase condominium insurance which includes content and improvements.
  6. Special Assessment. If there is unexpected damage done to one of the common elements, then you may be asked to pay a portion of the cost to remedy the damage.

To protect yourself always use a realtor and lawyer who has experience selling and buying condominiums.

Contact the GoWylde team if you have any questions about “Things to Know Before You Buy a Condo”.

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