Condos and any other type of property with an HOA (homeowners association) differ from single-family homes in several ways when it comes to property research:



1. Ownership Structure: In a condo, you own the interior of your unit but share ownership of common areas like hallways, elevators, and amenities with other unit owners. This shared ownership structure requires research into the condo association's rules, fees, and financial health.
2. Association Rules and Fees: Condo associations often have specific rules, regulations, and fees that govern the use of common areas, maintenance responsibilities, and any restrictions on alterations to individual units. Researching these rules is crucial to understanding your rights and responsibilities as a condo owner.
3. Financial Health of the Condo Association: It's important to research the financial health of the condo association to ensure that it has adequate reserves for maintenance, repairs, and other expenses. A financially unstable association could lead to unexpected special assessments or higher monthly fees.
4. Resale Restrictions: Condo associations may have restrictions on renting out units or selling them to certain types of buyers. Understanding these restrictions is essential if you plan to rent out your unit or sell it in the future.
5. Governing Documents: Obtain and review the condo association's governing documents, including the declaration, bylaws, and rules and regulations. These documents outline the rights and responsibilities of unit owners, association rules, and guidelines for governance.
6. Rental Restrictions: If you plan to rent out the condo, review any rental restrictions or leasing policies imposed by the condo association. Some associations may have limitations on the number of rental units allowed or require approval for tenant applications.
7. Assessment History: Investigate the history of special assessments and fee increases levied by the condo association. Understanding past assessments and potential future assessments can impact your budget and financial planning as a condo owner.
8. Insurance Considerations: Condo owners typically need to purchase insurance that covers their personal belongings and any improvements made to the unit, as well as liability coverage. Additionally, the condo association will have its own insurance policy covering common areas. Researching insurance requirements and coverage is important to ensure adequate protection.
9. Assessment of Amenities and Facilities: Condos often come with shared amenities such as pools, fitness centers, or parking facilities. Researching the condition, accessibility, and maintenance schedules of these amenities helps buyers understand the overall value and lifestyle offered by the condo community.
10. Special Assessments: These assessments may be imposed to cover costs such as major repairs, renovations, legal fees, or insurance deductibles that exceed the association's reserve funds. Special assessments are important to consider as they can impact the financial health of the condo association and affect the overall cost of owning a condo unit. Buyers should review the condo association's financial statements and meeting minutes to identify any past or upcoming special assessments.
11. Legal and Governance Structure: Condo associations operate under specific legal and governance structures outlined in their bylaws and declaration. Understanding these documents through research allows buyers to know their rights, voting powers, and how decisions are made within the association.
12. Past and Pending Special Assessments: Researching past and pending special assessments can reveal any significant repair or maintenance issues that may affect the condo community. Special assessments can impact monthly fees and the financial health of individual owners, so understanding this aspect is crucial.
13. Community Dynamics: Researching the condo community's dynamics, including its demographics, social atmosphere, and community events, can provide insights into the living experience and whether it aligns with the buyer's preferences and lifestyle.
14. Reserve Fund Analysis: Examining the condo association's reserve fund helps buyers assess whether sufficient funds are set aside for major repairs, renovations, or emergencies. A well-funded reserve fund indicates proactive financial planning and may reduce the likelihood of unexpected expenses for owners.
15. Back assessments from foreclosures can be a significant concern for prospective condo buyers. These assessments are unpaid fees or dues owed to the condo association by the previous owner who went through foreclosure. When the property is foreclosed upon, the association may not have received payment for the fees owed by the previous owner, leading to back assessments. Buyers need to be aware of any outstanding back assessments because they become the responsibility of the new owner upon purchase. Failure to pay these assessments can result in penalties, interest, and potential legal action from the condo association.

Understanding a condo before buying is crucial. Property research for condos is key because it helps buyers know the condo's rules, costs, and resale conditions. Thorough research ensures informed decisions, preventing surprises after buying and making the condo ownership experience positive.