Know Your Developer

Q: I am looking at buying a condo in a complex that is under construction. Are there any particular considerations that I should keep in mind since I can't look at the actual unit, which is nowhere near finished yet? I am renting nearby and see the construction progress, so at least I know the neighborhood well.

A: Eric Finke, customer service manager for Metropole, a new condominium in the District: Work only with an experienced, reputable developer. Look at its other projects as an example of what to expect and for assurance it will finish the project with the quality promised. In today's real estate market people want to see and experience a property before they make a final purchase decision. Buyers should always visit a model unit to sample room layouts, amenities and finishes.

Ask a lot of questions and carefully review the plans to confirm the specs of the unit in question. Establish good communication with the developer's representative, ensuring a firsthand point of contact throughout the process. Keep in mind many projects have a long lead time and delays are routine, so timely updates are vital. Look for a developer with a dedicated customer service department. Finally, always have everything agreed upon in writing.

Lucia Silecchia, a professor at Catholic University's law school who teaches property law:

Purchasing a condominium under construction involves unique issues, particularly with the legal and financial condition of the developer. Does the developer have sufficient assets? Sufficient insurance? What lawsuits, if any, are pending against the developer? Have the proper certificates or declarations of condominiums been filed? Does the developer own free and clear title to the land on which the community is built? If, as is typical, the builder has taken out a mortgage to fund the development, will your purchase of your unit "release" it from the burden of this mortgage?

Does the sales contract provide complete information about your unit, common areas and amenities? Does it provide a schedule for when the unit will be ready for occupancy? Does it provide for appropriate compensation to you if the promised schedule is not met? Does the contract offer reasonable opportunities for you to withdraw if there are legitimate concerns? What if many original purchasers in your development renege on their contracts? Will this affect the development's financial viability? What are your remedies if the builder attempts to convert a condominium plan into a rental complex instead?

A final issue to consider goes beyond the "bricks and mortar" of a construction site. As a condominium purchaser, you become an owner in a common interest community. While you will own your individual unit in fee simple, you will own the common areas as a tenant in common with the other unit owners -- purchasers who are likely to be strangers to you. Your activities, rights and obligations as a unit owner and community resident will be outlined by a set of covenants, bylaws and "house rules" as well as by day-to-day decisions made by a condominium board, elected by the unit owners. By playing an active part in shaping the early stages of community governance, you are far more likely to be satisfied with these important, yet less tangible, aspects of your new home.