Purchasing a Condo or Townhome? Questions to Consider:

As a Realtor in Durango, Colorado, I commonly am asked to show properties that qualify as Condos or Townhomes. Following are some important questions when considering the purchase of a property that is part of a multi-family complex:

1. Is there an active HOA and if so, what are the dues and how often are the dues billed?
2. Who manages the HOA and accounts for the dues? How is this leadership chosen?

3. What do the dues cover?

4. What kind of insurance does the HOA cover, if any? What kind of insurance does an owner need to provide?

5. What do the Covenants say about restrictions on use of the property. As examples: What are the pet policies? And, if you are buying as an investor, what do the covenants say about short or long term rental of the property?

6. Is money budgeted by the HOA each year for maintenance reserves?

7. Are there any ongoing, unsolved problems with the grounds, buildings, or common areas?

8. Are there any special assessments that might occur in the next year or two?

9. How old is the project?

10. What is the percentage of owner occupancy and does this pose any problems regarding obtaining financing?

11. When was the last time the building was painted?

12. When was the last time the parking lot was sealcoated?

13. When was the last time the roof was replaced?

14. When was the last time the decks were replaced? How often are they stained?

15. Do the sidewalks and parking areas need to be replaced?

16. Are there any on-going structural problems with the buildings?

17. Are there sufficient funds in the HOA reserves to do all of the above according to a maintenance
schedule?
18. How frequently are HOA meetings held? Are there any pending disputes or active lawsuits involving the HOA?

I hope you find this information useful if you are considering the purchase of a townhome or condo in a multi-family complex. Don't hesitate to contact me with any of your real estate needs.

Don Ricedorff is a licensed real estate broker in the State of Colorado, with 16 years of experience, and he resides in Durango Colorado.He has numerous real estate designations, which have provided him with an unparalleled education to assist his clients.


The designations include:

CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member
CDPE, Certified Distressed Property Expert
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property Specialist
SRES, Senior Real Estate Specialist


He is also an active volunteer in the community and his church. His highest aspiration is spending time with his wife, Janet, and his three children Kelly, Katie, and Kyle. His other interests include playing tennis, fly fishing, hiking, boating, and water skiing.