Caveat Emptor.  Buyer Beware!  This goes for all Real Estate purchases - be aware, stay alert, do not hesitate to ask questions, do not hesitate to knock on doors and ask other owners candid questions.  Be on your guard for anything that doesn't make sense to you, or doesn't add up!  If something seems hokey, it probably is!

Check the By-Laws as far as insurance requirements.  Ask for a copy of the Master Policy, and bring that to your agent to review.  Find out what the Association's deductible is, and talk to your insurance agent to make sure there are no gaps between the Master Policy and your policy.  Review to see if there is mold coverage.   Make sure your agent explains to you the coverage.

Review the By-Laws and insurance policy to see who covers what ---- is the Association responsible for common areas?  Who covers betterments and improvements?  This area can be confusing, so make sure this is explained and you fully understand the terminology before you buy.

Have your lawyer look over the By-Laws and Master Policy - that way you can have someone who represents you make sense out of them and explain anything that you don't understand.

Check out the Association Board and the Management Company---a bad Association Board and/or a Management Company will not protect your investment.  Do not hesitate to check out individual members of the Board or staff.  Things to look for are: police records, newspaper articles, even lawsuits.  Lawsuits, whether personal or professional spell trouble.  Whether the Association or individual is the Plaintiff of the Defendant, what were the grounds for the litigation?  What was the outcome of the litigation?

Meeting Attendance - if low turnout, you can bet there is something wrong - also check voting percentages.  If owners do not show up at meetings, or do not vote, this indicates a problem.

Check local courts to see if there is any pending litigation filed against the co-op corporation or condo association.   Also, look at local court dockets for small claims court cases.  This is very important, because once you are the owner, the outcome of a lost suit could be passed along to you, the individual owner, in the form of a 'special assessment', that there is no way around paying.  If you do not pay assessments, a lien will be filed against your property, and the next step is foreclosure.

Do not hesitate to contact the local Police Department and ask for a copy of all Police Reports for a certain period of time (say 18 or 36  months), to get an idea of what goes on in the complex.  Are there a lot of domestic 'situations'; Are there unruly juveniles in the complex?;  Are there excessive theft reports?  Are these reports 'break-ins', or what resembles a 'keyed entry'?

Find out if there are any pending major engineering projects yet to be completed that will require a future 'special assessment'.  Check with some current owners about problems that will have to be dealt with such as eroded concrete balconies, road repaving and sewer or electrical reworking.  This is especially important in older complexes, because any one of these could result in an unexpected big bill for you after moving in.

Ask if the co-op or condominium have adequate reserves for repair or replacement costs of a major project.  Many of these Boards of Directors do not maintain reserves because the unit owners that have a say in the operation just won't vote to increase the maintenance fee to allow a reserve.  Be very wary of buying into a no-reserve development.

Do not hesitate to ask for Financial Reports going back five or more years.  These documents will show you a great deal about the spending habits of the Co-op or Association.

Ask questions as to how the Association/Management Company has handled water infiltration problems in the past, and ask if they have a maintenance plan in place.  Water problems should be dealt with immediately.  Ask who is responsible for mold in common areas and the individual units, and if they have had problems in the past.  If you're stonewalled, or not satisfied with the answers, you may want to keep searching. 

IF YOU FEEL THAT WE HAVE MISSED ANYTHING ON THIS CHECKLIST, PLEASE DROP US A NOTE BY CLICKING HERE.