One of the first questions I get asked is Can I rent the place? Some units have rental restrictions and that can be changed at any time by a vote of the homeowners. There is a love/hate with renting. Of course, as the owner, you want to be able to have that option. But when you sell, if the owner occupancy is too low, a lender could turn down your loan. The owner occupancy rate needs to be 51% or higher to obtain a loan. I personally think it’s good to have rental restrictions because a day will come when YOU will want to sell and you don’t want the building to have turned into too many rentals. Owners have a tendency to also take better care of their places than renters.
Logical question to ask and you must do your due diligence to get the answer. When you buy you get a resale cert, and meeting minutes come with that. That is also a question that is answered in the resale certificate you get as a buyer and have 5 days to review. But there is a difference between knowing about an assessment or the board just discussing an issue that could lead to an assessment. Assessments can be ok if the dollar amount is specified, and either paid by buyer or seller at closing.
Limited litigation can be ok if dollar amount specified and insurance is enough to cover the full amount. I lived in a condo once that had a litigation issue, and I couldn’t sell until the litigation was resolved.
If there is work being done on the complex, many loan programs require the work be completed prior to funding. The association must have a current and approved budget with at least 10% reserve funds.
The complex must be FHA or VA approved and most are not. There is a process to obtain this approval and most associations don’t want to do what it takes to obtain this qualification. It is more frequent to see VA financing in newer condo construction.