While all sellers face a variety of obstacles, condominium ownership represents a unique set of complications. The most basic condominium problem is identifying the exact commodity being sold.
Condominiums come in all shapes and sizes, most typically town houses, apartments, and cluster homes.In addition, there are condominium communities with detached homes and even trailer parks.
It is clear that one cannot identify a condominium merely on the basis of the housing from involved. Instead, it is necessary to look at the documents which created the condominium.
Condominium ownership can be divided into two categories, individual property and community property. Individual property is the actual living living unit of the owner, while community property can include, or exclude, everything even remotely connected with the project.
Before placing a condominium on the market, sellers should review their sales agreement, the master deed or condominium declaration, and both the budget and bylaws of the condominium association. This review is best conducted with the aid of an attorney who is familiar with condominium ownership. Some of the questions to ask include:
What is it you own? Do you, as a member of the condominium association, own the pool, tennis court, parking areas, or other specialised facilities? Or has the developer retained these items as income-producing property?
Do you own the land under the building? Some condominiums have been built with a 90-year ground lease.
Who rans the condominium? Do you have a professional outside management firm, a mamager hired directly by the association, or an ad hoc tenent group to run the building? THis is important to many potential buyers.
What are the "use" restrictions on the condominium? Are you allowed to rent? Can you have a dog?
Is you condo a rental unit conversion? If so, what guarantee, if any, has the developer made about such major elements as the roof, heating system, air conditioning, or electrical wiring? Does you association have a replacement reserve account to handle major building defects?