Guide To Buying A Condo
The condominium market has been rising steadily for the past few
years, with the condo market regaining the momentum and
importance it had in the initial condo boom of the 1980s. Condo
buyers generally fall into three groups: first-time buyers
making the jump from renting; people looking to buy a second
home that they will use part-time; and retirees who are trading
in high-end homes for the low-maintenance lifestyle a condo
provides.
What exactly is a condominium?
A condo development can take the form of apartment-style
complexes, townhouses or converted multi-family dwellings. What
distinguishes it from other multi-tenant buildings is that the
developer has legally declared it a condominium, and individuals
can purchase units in the building or complex. In most states,
this means that the development falls under specially designated
laws and regulations applied to condominiums.
When purchasing a condo, the owner buys the title to his or her
individual unit, up to the walls, but not including them. A
common description of a condominium is a "box in the air."
Common areas of development, such as stairwells, dividing and
outer walls, fitness centers and rooftop gardens, are under
shared ownership. Each unit owner holds an interest in these
spaces. In order to manage the maintenance and repair of the
shared common areas, every condo development has a condominium
association, also known as a unit-owners' association. The
association is elected by condo owners and makes communal
decisions in the interest of the community.
Condo costs include a down payment, mortgage and property tax;
condo fees, which are paid by every resident to help with the
maintenance of the building and to provide facilities such as a
pool or gym; and special assessment fees, which may be requested
when an unexpected repair or planned modification exceeds the
cost of the condo fees collected.
Rules To Live By
Condominiums are governed by a set of rules called Covenants,
Conditions and Restrictions (CC&Rs). The rules vary from one
condo development to another. They may impose restrictions on
pet ownership, noise levels, remodeling projects, and renting.
The CC&Rs are enforced by the condo association. It's a good
idea to read the CC&Rs to make sure that you are comfortable
with them before you purchase a condominium.
For more information on condos, visit http://www.lendingtree.com/cec/yourhome/buying/b
eginners-guide-to-condos.asp