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ABA Family Legal Guide

Buying and Selling a Home

The Steps of Buying and Selling a Home

Buying in a Multiunit Building or Development

What criteria should I consider when buying a condominium or a co-op?

First, read all of the governing documents and review minutes of recent board of directors' and owners' meetings. Another source of information about a condominium association, a cooperative corporation, or other common-interest property is to talk to owners or shareholders. Ask them what they like best about where they live and what their complaints are. Along with all the things one would consider about a single-family home, such as neighborhood, prospective common-interest buyers should consider the following:

  • Percentage of owner-occupants and renters. A high percentage of renters could indicate poor sales and/or absentee landlords who are less interested in maintaining the building. Because of these risks, it is often difficult for prospective buyers to obtain loans for units in buildings with a high percentage of renters.
  • Monthly maintenance fees, special assessments, and the history of such items. You will also want to ask whether the association or corporation is involved in any lawsuits brought by builders, neighbors, or former owners.
  • Financial condition of the association or corporation. You will want to get a copy of the most recent financial statements and budgets.
  • Quality of construction. Hire an inspector and make certain that he or she checks the soundproofing, the condition of shared common areas, such as the roof and patios, and the electrical, heating, and plumbing systems.
  • Bylaws and/or covenants. If these are too restrictive, you may have trouble obtaining a loan or selling your unit or share in the corporation. Covenants will also dictate whether you can lease and other uses of the property, including whether pets are allowed.

    Chapter 5, "Home Ownership," also contains detailed information about shared ownership.

    • American Bar Association Family Legal Guide
    Copyright © 2004 American Bar Association
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