It is extremely important that you familiarize yourself with the condo association's legal documents. In Connecticut, these typically include Articles of Incorporation, Bylaws, Rules and Regulations, and Covenants, Conditions and Restrictions. Your lawyer should carefully review these documents with you.
Here are a few questions you should ask.
1. Home Owner Association Fees
One of the requirements of condominium ownership is the payment of a monthly fee, which covers general repairs and maintenance to the common areas and the external maintenance of the buildings in the condo complex and general expenses, as well as fund cash reserves for future needs.
- What are the monthly condo fees, and what do they cover?
- What is not covered by the condo fees?
- Is the condo association well funded with reserves, and how are they invested?
2. Special Assessments
- Are there currently any special assessments or have there been any in the past? If so, what for?
- If an assessment is currently in place, will the seller pay it at closing or passit on to you?
- Is a special assessment anticipated in the next 6 months? In the next 12 months?
Discussion of special assessments or raising of condo fees by the condo association should be revealed in the minutes of the association's meetings. You should ask for copies the minutes for the last 12 months as well as contact information of the HOA president or management company.
3. What covenants, conditions, and restrictions govern the property?
- Is rental of units permitted? If so, what percentage currently are rented? What percentage are owner-occupied?
- What restrictions, if any, exist regarding such things as age requirements, pets, parking restrictions and types of vehicles?
4. Is the association self-managed or do they have a management company?
Condo associations must deal with complaints, routine service calls, file yearly reports with the Secretary of State and IRS, keep various paperwork and legal documents, and enforce the rules and regulations. Handling complaints or conflicts between your neighbors can be unpleasant, at best. Property-management professionals are usually better suited to do these tasks. They also offer continuity that changing association officers cannot. This is especially important when it comes to legal filings and maintaining records and important association documents.
