When you’re buying a condo there’s a lot to look at. A single detached home where the nuts and bolts are pretty much evident and available to an inspector is relatively easy compared to the issues facing a condo buyer. With a condo there are the added issues of financial management on top of the structural issues.
So here goes. You’ve looked at condo that you like quite a bit. It's the best you’ve seen from your perspective – best finishings, best price, layout, amenities – it's a perfect fit. You look over lovingly to your REALTOR, while gushing and ask what they know about the complex.
They suggest getting condo docs and reviewing them, but that’s not really your schtick, then it happens (the dangerous assumption that is).
- You assume that since quite a few people live there already, and that there have been a number of recent sales that someone smarter then you must have reviewed the documents and therefore everything should be ok.
I can’t tell you how wrong this is. Even if someone smarter then you has bought there and did all their due diligence and then some, something may have happened in the time that has transpired since they bought. No matter how recent the sale.
For example, I sold a condo in a complex last summer and at the time everything looked great. If any one was to ask me about that complex that would be my recollection, notwithstanding the fact that since then the condo association has filed a significant (in the millions) statement of claim against the developer for structural deficincies.
Sometimes there are problems that are harder to find – inadequate reserve fund, or maintenance deficiences for example. This is why some condo buyers are now opting to have a professional condo document review company audit condo documents.
You can file this under the parental advice sub heading of Just because someone else jumps off a bridge doesn’t mean you should. So the next time you have that loving feeling remember there is no substitute for adequate protection.
