To begin, I wanna admit that one key lesson I remember learning from my parents was to “always look carefully at the fine print”. They stressed the importance of reading and understanding each word and sentence to the core until it made sense. When it comes to buying apartments, whether in Miami or around the world, I can’t stress the importance of doing so. The fine print of any building comes in the form of a package called the “condo docs”, which includes the condo budget. On today’s observation I will cover the importance of reviewing these documents, but in particular, reading the budget.
First, the process begins when the buyer requests the condominium documents of a listing in the initial offer. The request section can be found in Paragraph 6 of a typical condominium addendum. Requesting these documents entitles the Buyer, at Seller’s expense, to receive current copies of:
- A current copy of the declaration of condominium
- Articles of Incorporation of the Association
- Condominium by-laws, rules and regulations
- Frequently Asked Questions
- A copy of the most recent year-end financial information
One of the biggest tasks I have as an agent on any condo deal is to read and analyze the condo budget. These long and dull documents, filled with numbers on every single page, are the key to determining the organization and status of a building as a whole. The information within those documents should help provide insight as to how organized the association is. Furthermore, it should show that the property is handling its assets adequately through strong funding and adequate management.
In short words, these documents are important because it will help you (the buyer) see if the building handles its funds well. Most condominiums need to have an appropriate fund with reserves along with a structured payment plan allocated among all units.
I understand this may not be fun or entertaining, but it’s necessary. Read all of the documents and make sure you understand them!
In Conclusion: Verifying A Condo Budget
Lastly, this may be among the most important observations I will ever write for this page. The amount of sales I’ve seen where the condo budget isn’t reviewed is quite remarkable. Even more remarkable is the fact that many agents out there, some which advertise themselves as area experts, show a complete disregard to this very important step in a condo purchase. In my opinion this is beyond irresponsible and failing to do the due diligence may come with unintended consequences.
Reading is good for you. Most of all, with this particular subject, it could also be good for your pocket. Do yourself a favor and ask for a copy of the documents I mentioned above.
Real Estate Contracts are intended to be legally binding agreements. We recommend seeking the advice of an attorney prior to signing if any agreement being done is not fully understood.
Last but not least, we are dedicated experts when it comes to Downtown Miami Real Estate. Our knowledge in the area and the market allows us to provide the most professional advice you can find. Stay in touch with our blog to read the latest information about the area. Call us today at 305-305-3885 or e-mail us at firstname.lastname@example.org if you’re looking to buy or sell in Downtown Miami.
Thank you for reading The Miami Observer!