Before you buy a condo, contact the condominium’s board with the following questions. By getting these questions answered, you will find out a lot about your potential neighbors, and the building that you are buying into – a valuable step in preparing to buy a Boston condo.
1. What percentage of units is owner-occupied? What percentage is tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale.
2. What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place? You may find, for instance, that those who buy a property after a certain date cannot rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live within them. And have your real estate attorney review property docs, including the master deed, for you.
3. How much does the association keep in reserve? How is that money being invested?
4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise, as appropriate, assessments a certain percentage each year to build reserves to fund future repairs. To determine if the assessment is reasonable, compare the rate to others in the area.
5. What does (and does not) the monthly Homeowner’s Association (HOA) fee cover? Typical items that one finds included in their HOA fee include, but are not limited to, common area maintenance, trash collection, master insurance, exterior landscaping, snow removal, recreational facilities, water, and sewer. Depending on what type of development you live in, such things as valet parking, concierge, a pool, and security, could increase your HOA fee.
6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board’s fiscal policy.
7. How much turnover occurs in the building?
8. Is the project in litigation? If the builders or homeowners are involved in a lawsuit, reserves can be depleted quickly.
9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions. Request an engineer’s report for developments that have been reconverted from other uses to determine what shape the building is in. If the roof, windows, and bricks are not in good repair, they become your problem once you buy.
10. Are multiple associations involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you are buying, may require separate assessments.
Keith Munsell 
