When buying a townhome or condo in Minnesota your purchase agreement will include a CIC Addendum allowing you 10 days to review the Association disclosures and Resale Certificate. These documents include Budgets, Financial Disclosures, Insurance Certificates, Bylaws and a statement letting you know if the sellers are up to date with their dues payments. These documents are usually delivered to you in large, multi-page PDF’s which include multiple pages on plats, city approvals, etc. Don’t let your eyes glaze over. It’s important you know what to look for and what to ask when buying a cond or townhome. Once you have reviewed, and if you don’t like what you see you can cancel the purchase agreement within this 10 day timeframe.
Most buyers want to review these documents for the following reasons:
- Can they have a pet, if so what kind, how many and what size?
- Does the association allow rentals?
- What does the monthly association fee pay for?
- And where can I park my car that doesn’t fit in the garage?
All are good questions that will affect the buyers enjoyment of the property. The one area that usually gets overlooked however are the financials.
It is important to review the financials and ask the following questions:
- First, is the association solvent?
- Are there any large budget increases for the upcoming year that will cause the monthly dues to change?
- Does the association have funds set aside for emergency repairs, ie. siding, roof, etc so they will not have to charge the units assessments that can greatly increase your monthly dues?
- And does the association have a plan for continued updates and maintenance of the facility?
A well run association may cost a little more every month, but it will actually end up saving you money in the long run should a problem arise.
Thinking of purchasing real estate. Make sure to contact Realtor Dan Kokesh so you know what to ask and how to avoid buying a problem.
See below for current townhomes and condos for sale in the west Metro area of Minneapolis.
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