While there has been a marked increase in both new and conversion condominiums in Massachusetts, where I practice real estate law,and most other jurisdictions in ActiveRain nation, it is my sense that many people get involved in a condominium purchase without any real understanding of what they are getting into and the inherent risks involved in condominium ownership. I have written other posts about the inconsistencies of condominium governance and the difficulties condominiums experience in encouraging able and stable people to serve as Trustees and Officers. That will not be the subject of this post.

This post is designed to be more positive. I want to lay out some of the guidelines I have followed in representing Buyers of Condominium Units, and how I have been able to work together with committed Buyer Agents to do the best possible work in terms of due diligence and disclosure. It is this “teamwork” element that I want to stress. I am so grateful for the advent of Buyer’s Agency, because I now have a real ally on the Buyer’s side. There are no conflicts here; the Buyer’s Agent and I are on the same page.

•1.       Pre-Offer Stage. This is where the Buyer’s Agent can really shine. I suggest that the Buyer’s Agent accompany the Buyer to the Condominium and then knock on some doors. Speak to the current residents. Ask them how things are going with the Condominium Trustees. Do they keep you informed of meetings? Are minutes ever distributed? If you have day-to-day problems, are they addressed? More than anything, this due diligence will give your Buyer a sense of what he or she is getting into. Remember, if the people interviewed lie, or even embellish, they are going to have some really embarrassing moments making explanations for their imprecations in the elevator or the laundry room.

•2.       Offer Stage. This is where the Buyer’s Agent and I can combine our efforts. The Buyer’s agent must be meticulous in terms of including everything that is included in the purchase in terms of appliances and other personal property. The Agent must make sure that the Buyer’s obligations are subject to the review of the Condominium Documents and Financial Information by Buyer’s counsel. Once the Offer is signed, I can almost always locate the Master Deed and Condominium Trust on-line. I will do this right away and alert my client to any aspect of the documents (pet’s policy, right of first refusal, policy on rentals) which I think is important. The Buyer’s Agent should be obtaining a current Financial Statement, Budget for the coming year and Minutes (if any) of the Condominium Trustees. I will review these, as well, and report any items which may be “red-flags”.

•3.       Purchase and Sale and Thenafter. There are certain basic items which I will include in my Buyer’s Rider. These include a statement about no future assessments and title representations which will be important at the closing table. My firm will obtain what is called a Municipal Lien Certificate which indicates the status of tax payments to the city or town where the Unit is located. Normally, the Buyer’s Agent will track down the 6(d) Certificate (statement that the Condominium is current in monthly condominium fees) and a Certificate of Insurance issued by the insurance carrier, who insures the Condominium common areas, which indicates the Buyer as an insured under that policy at 12:01 AM on the date of closing. The Buyer’s Agent often assists the Buyer in obtaining an HO6 Policy which protects personal property within the Buyer’s Unit and liability for occurrences within the Unit.

So, you can see how truly “joint” the enterprise between Buyer’s Agent and Buyer’s Attorney has become in terms of Condominium purchases. Together, we cannot solve all the problems which exist in Condominium governance. On the other hand, we can make sure that we have an informed, and prepared, consumer, and that knowledge can do nothing but make the experience more manageable.