Checklist for Condominium Listings

Real Estate Property News

Checklist Before Listing a Condominium

Our friends at Guarantee Mortgage put this nice list together of issues that need to be resolved before putting a condominium on the market. I’ve seen many of these things send a deal into a tail spin, it’s better to deal with them early on.

  1. Make sure the CC&R’s include an arbitration clause.
  2. Make sure less than 15% of the units in the HOA are delinquent on HOA dues.
  3. Make sure the HOA has decent reserves. 10% of the annual revenue is a good rule of thumb.
  4. Make sure there is no litigation in the property.
  5. Make sure the majority of units in the HOA (51%) are owner occupied or 2nd homes.
  6. If the square footage is less than 500 square feet in the unit make sure there are similar comparable properties that have recently sold.
  7. Make sure the one entity does not own more than 10% of the units in the HOA.
  8. If less than 10 units in the HOA make sure each owner only owns one unit.
  9. Make sure the master condo insurance is not pooled insurance meaning there are several HOA’s under one umbrella.
  10. Make sure the commercial square footage mix of the HOA doesn’t exceed 20%.
  11. Make sure there are no special assessments. For instance, to pay for the new roof the building needs but the HOA doesn’t have enough money to pay for.
  12. Make sure there are no deed restrictions as there are for many live/work lofts, senior and disabled living communities.