Condo And Co-op Buyer’s Homeowner Association Checklist

Last issue I went into depth about what is a co-op. But while it is good to know, there are very few in the Denver area. However, when you buy any condo or co-op, you’re also buying into a homeowner’s association. Click through for a quick checklist of critical information to get before you finalize the deal...

When you buy a condominium or co-op, you agree to pay monthly condo or co-op fees that cover the cost of things like repairs, maintenance, insurance, landscaping and operation of shared amenities like pools or bike paths.

That makes it critical to understand the homeowners association’s finances, budget and rules before you buy. 

While not every association will have all these items, here’s a list of a dozen items you could ask for before you close your deal:

1. Governing documents (also called declaration and bylaws or codes, covenants and restrictions).
2. Rules, regulations and resolutions not in the governing documents.
3. Policies on pets, parking, collections and rental restrictions.
4. Past year’s financial statements.
5. Most recent reserve study (shows schedule for major repairs and funding level of reserves).
6. A list of any scheduled special assessments.
7. Percentage of unit owners behind in their assessment payments.
8. Information on any lawsuits the community association is involved in.
9. Board and annual meeting minutes for past year.
10. Insurance coverage carried by the community association.
11. Past year’s newsletters.
12. List of architectural violations for the home you’re buying.

I'm familiar with many of the community associations here in our market. Contact me and we can discuss buying a condo.

Source: Richard L. Thompson www.Regenesis.net

Image:  Larry Roberg Fotolia.Com

Modified by: Theresa Tscheschke Gunal ; Used courtesy of Dona Dezube, Home Actions, LLC