3 Questions to Ask when Purchasing a Condo

Before purchasing a condo, it's important to get as many of your financial concerns addressed as possible. Here are 3 questions to ask:

1 - Are There Any Pending Lawsuits?

You need to know whether the development or the homeowners association is being sued, either by former owners or builders. It can affect the condo's value and your homeowner association fees when the lawsuits are over.

3 - What is the Financial Health of the Homeowners Association?

Try to get information on whether the homeowners association is underfunded or in strong financial health. Purchasing a condo means you'll be tied to the homeowners association, so you can't ignore it in your decision making.

4 - Can I See Your Certificate of Insurance?

There are certain things you want to look for, such as replacement coverage if something happens to your condo. You'll also want to make sure that the homeowners association has enough coverage to keep up with changing ordinances that may affect building codes. Purchasing a condo without adequate insurance can pose a financial hardship down the road if there's a catastrophe that damages the condo.

Get as many details as possible concerning these questions so you can make an informed decision.

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