Over the past few years condos have become one of the most popular forms of housing in most major cities. With such an astounding variety of condo styles it is easy to say that most everyone can find a condo that suits them. However there are a particular set of concerns and things to watch for when buying a condo that are quite different than those associated with purchasing a single family home. Remember that a condo is a communal or apartment style living situation where neighbors will be in close proximity at all times so if that bothers you, you may want to consider something else.
One of the first things that any prospective condo buyer should consider is how the complex in question is managed. Usually there are two entities that one must deal with when living in a condo. There is the condo management and then there is the residents council or association. Take some time to research any management company before buying. Some are better than others and some are; well.... It is important to know how a building is run before buying, if the current management is not doing their job and fulfilling their responsibilities then you should easily be able to find a complex where the management does. Also it is good to find out about the resident's association and any rules or guidelines that they have set out for the complex. Some of those rules may not be to your liking so take the time to investigate before you buy. Don't forget to find out what the monthly condo fees are either, this is an important expense and one that you should be aware of up-front.
A major thing to consider is the neighbors who will be living with you. Is the complex mostly owners or renters? Naturally owners will respect their units more and have more pride in them than renters do. In fact, many complexes have strict regulations regarding rental of units. Some popular vacation areas also have a thriving vacation rental market so if new neighbors on a weekly basis aren't your cup of tea then it would be wise to move on.
As with any real estate purchase it is unwise to jump into anything. Research is one of the most important steps in the process and if you have no idea about where to start then consult with your real estate agent for guidance. After all, they are professionals!
The term condominium, condo for short, is a commonly misunderstood word. A condo describes a method of owning real estate, not a particular style of building. A single condo is one housing unit within a larger complex of units, and a condominium complex is used to describe the collection of all units within the same development. The type of unit could be an apartment, a townhouse (which is sometimes referred to as a row house), or any other multi-unit property.
When you buy a condo, what you actually own is the inside of the unit itself; all unit owners own everything outside of their unit, proportionately and collectively. For example, you as an owner of a unit and all the other unit owners collectively own hallways, stairs, pools, recreation centers, grass areas, etc.
Since all unit owners collectively own anything that is outside of the individual units, all owners must provide funds to maintain these common elements. In most communities, owners elect members from their ranks to form a Condominium Association (CA), whose charter is to establish a budget, collect dues from unit owners, manage the repair and maintenance of common elements, and to oversee the affairs of the community. Many CAs hire Property Managers to undertake these functions, but the responsibility and accountability remains with the CA.
The Condominium Association is responsible for determining the amount of money needed to manage the affairs of the community. In addition, the CA must maintain sufficient funds in reserve to address any emergency costs and to prepare for larger maintenance projects that occur less frequently (e.g. replace all roofs in the community). Based on anticipated expenses and the need for reserve funds, the CA sets the amount of the monthly "condo fee," which must be paid by all unit owners. The CA can also impose special assessments on the owners if unforeseen expenses are incurred.
Condos offer a variety of benefits to their owners. Condos tend to be less expense than real estate owned by other methods, many communities offer amenities such as pools and tennis courts, and there is no hassle of personally maintaining a yard or others structures outside of your unit. So if you like living next to many neighbors and want access to a variety of amenities at an affordable price, then condominium ownership may be a good option.
While condos tend to be less expensive than other forms of real estate ownership, there are also drawbacks. Condo units tend to be connected to one another, which increases the chance of hearing noise from adjoining units. Condo owners usually do not have their own yard because individual unit owner do not own the land underneath their unit. Unit owners must share available resources such as the pool, tennis court, recreation center, etc with all other residents. The monthly condo fee mentioned above tends to increase every year in most communities, as the price of good and services retained by the community increases.
Because of these drawbacks, many buyers shy away from purchasing a condominium. Moreover, depending the condition of the real estate market, condos are often harder to sell then real estate owned by other methods such as Fee Simple.
As mentioned above, the elected Condo Association is responsible for the affairs of the community. This body typically meets monthly and has the authority to pass actions that impact all owners with regard to the amount of monthly dues, the community rules, etc. The members of the Condo Association are typically elected annually, although this can vary from community to community. Since management of the Condo Association is a democratic process, it has all the peculiarities of any political body. Therefore, most owners find it beneficial to attend all monthly meetings, so that their voices are heard.
The authority of the CA and other rules of a community are usually detailed in a document called the Covenants, Conditions and Restrictions (CCRs). Be sure that you and your legal representative review this document before buying a condominium, and consult a knowledgeable Real Estate agent to represent you throughout the buying process.
Both Adeal Benhayoun & Real Estate Advisor are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Adeal Benhayoun has sinced written about articles on various topics from Sell Home, Foreclosure Help and Home Improvement. Adeal Benhayoun is a professional realtor specializing in . For all of your. Adeal Benhayoun's top article generates over 9900 views. to your Favourites.