You’ve found the condo that seems to fit your lifestyle. Now it’s time to get into the details before you write an offer. There are many factors about an HOA that can derail a loan, and knowing the answers to a few key questions will ensure you’re making a good investment—and that your loan processes without a hitch.
This is particularly important in the larger buildings, which can be more complicated than your four-unit Edwardian.
You and your Realtor should review all available HOA disclosures before determining an offer price. Here are my top 10:
1. Is the project a live/work, with any deed restrictions?
2. Does any one entity own more than one unit in a project that has less than 20 units?
3. Is there more than one short sale or foreclosure happening in the property?
4. Does any one entity own more than 10% of a project with more than 20 units?
5. Are there any special assessments coming up in the future?
6. Are more than 15% of the HOA dues delinquent?
7. What is the percentage of owner occupancy in the building?
8. What is the percentage of square footage that is allotted to commercial space?
9. Was the building recently condo converted?
10. Is there any litigation pending?
Knowing the answers to these questions will also make you more confident about your purchase (or give you a reason to move on).