Is Condominium Living "Right" For You?
Condominium living in Boston and Cambridge can be exciting, convenient and a remarkable investment. But unless you know condominium law, procedures, details and local customs that can be overlooked, condominium living can be aggravating, time consuming and sometimes a legal or personal nightmare.
There are three major elements to examine: the financial structure, the condominium documents, and the rights and limitations connected with the use of the unit.
Is the Financial Structure Sound?
No one likes surprises. The financial documents of the condominium – operating budget, profit and loss statement, etc. will usually reveal if the condominium association is operating above break-even and has sufficient funds in reserve. It may also reveal if there are any current special assessments to be paid or if there is litigation causing a financial drain on the association among other important matters.
FNMA requires a condominium have a reserve fund of no less 10% of its annual budget.
Condominium Documents.
A condominium is created by the filing of a master deed. The master deed divides the land and building into condominium units and common areas and describes the rights and restrictions that pertain to each unit.
The condominium association is operated by a board of trustees or officers. It is often essential to review the notes (or “minutes” as they are called) of meetings of the trustees or officers.
These minutes may reveal repairs or improvements that are planned (which could mean a future assessment) and other key decision making information.
Parking, Amenities and Restrictions on the Use of Your Unit
The condominium documents will reveal any rights to parking, storage and restrictions on pets, renting and other uses of your unit.
Disclaimer: The Massachusetts state bar does not certify any lawyer as a specialist or expert in real estate. As used in this website, where any reference to real estate lawyer or attorney means that the law firm has a heavy emphasis in real estate law and transactions in its practice.
Condominium documents are lengthy and often difficult to read.
Let us interpret the documents and provide the advice that will avoid unpleasant surprises.
And if you wish a purchase that occurs smoothly and without delays, call us.
We can recommend exceptional lenders who will meet your deadlines and intelligent, capable brokers who will truly represent your interests.
George Warshaw & Associates
We are a law firm licensed in Massachusetts. We represent buyers and sellers of homes and condominiums, prepare wills and trusts, limited liability companies, and provide common sense advice and planning among other services.
This information is the express opinion of George Warshaw and does not constitute legal advice, nor substitute for consultation with your own legal professional.