Reviewing Condo Docs

Condo Doc Review Overview

If the property is part of a homeowners or condominium association, the seller will provide you with governing and financial documents from the association. You and your attorney will review these documents for red flags. You are mainly looking for:

1. Terms that may restrict your intended use of the property – i.e. the association doesn’t allow pets and you have a dog, the association has imposed leasing restrictions and you intend to rent, etc.

2. Any indication that you may incur unexpected financial obligations – i.e. increased monthly assessment, special assessment, etc.

Timeline

Once you receive the documents, you have 5 business days to review. If no concerns are raised within the 5 business days, this contingency is waived.

Important to note: this is a separate contingency from the attorney review and inspection contingencies. Associations have varying lengths of turnaround time for these documents, so you may not receive them until attorney review is closed. Not to worry – if there is something that is concerning in the documents, you can discuss with your attorney & they will raise with the seller’s attorney.

Documents

These are the condo docs that you can expect to receive from the association. Some associations are smaller & more informal, so they may not have every document listed here!

• Recorded declaration, bylaws and all exhibits, including the condominium survey (identifying the unit’s limited common elements, including storage and parking spaces)

• Current and prior years’ budget

• 22.1 disclosure statement

• Paid Assessment Letter

• Past 12-24 months of meeting minutes 

• Rules and regulations (if available)

• Reserve study (if available)

• Balance sheet (if available)

• Move-in requirements/sales packet (if available)

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