If you are buying a condo, checking of documents gets complicated compared to buying a house. The reason for this is that you are becoming part owner of a whole housing development. Expect to go through tons of documents that outline your unit purchase and the important R's of condo ownership, namely, your rights, responsibilities, and restrictions. These documents consist of really long pages, and more often than not, you might need an interpreter to fully understand them.
Upon signing these documents, you would be creating a legally binding agreement. It is fortunate to have a developer who furnishes descriptions ofthe documents in plain English. Still, you must read all of the papers. Whenever necessary, hire lawyer. Just be sure he or she is knowledgeable about condo real estate purchases.
When buying newly built units, a lot of states do provide some protection. At least 15 states have adopted The Uniform Condominium Act and several other states include extensive disclosure requirements. Most states supply for a brief 'cooling off' window that allows the buyer get out of the deal.
Even so, buyers are advised to demand for the disclosure documents prior to signing any sales contract or reservation agreement. More often than not, these documents may be borrowed from the sales office within a 24-hour or 48-hour period. In some cases, you could take home the documents to study by leaving a $10 to $25 refundable fee with the sales office for their safe return.
When this method is followed, the buyer is better acquainted with what he could be getting into and is able to adjust some problems by calling for added terminology in the sales contract for clarification or modifying certain points. Several states even require disclosure to buyersupon resale. In some instances on resale projects, checking records and documents can prove to be more important since they may be floundering without a developer's backing.
The first document you will be signing is the condominium sales contract. This should thoroughly describe your unit, the purchase price, and the method of payment. It must state also how much the monthly assessment would be. Never sign until you're totally satisfied of knowing as much as you want regarding the property you are buying.
Also known as the declaration, the master deed is the controlling condominium document. It must fully identify the size, location, and mechanical equipment in every condominium home. Be on the lookout for definitions and elaborate descriptions of these additional items: the owner's association, the scope of the project itself, common elements, provisions for assessments and charges, the purposes for which the building and each of the units may be used, and a management agency agreement.
Finally, the bylaws provide for administration and maintenance of the condominium complex. These will immensely impact what you can and cannot do with your unit and may affect your capacity to resell in the future.
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© Athena Goodlight (reposted from 2012)