We haven’t touch upon this subject in quite a while. When buying a condo, we have a rule (the 50/50 rule) that will help you understand the importance of knowing the impact of a potential condo association. You must understand that it’s a 50/50 purchase: 50% is the condo itself, 50% is the condo association.From a technical standpoint, this formula is wrong. You own 100% between your walls, and a proportional share of the common elements (roof, hallways, etc.). But from a real life aspect, we believe that you should remember the 50/50 rule when looking at purchasing a condo.
When you have a condo under contract, your attorney should ask the seller’s attorney for all the financials of the building: profit/loss, budget, meeting minutes, balance sheet, 22.1 disclosure.
You will then have five business days to negotiate any issues with the seller. So it’s VITAL that you tell your attorney and your real estate agent that you need to see these documents when they are received by your attorney. If you do not try to negotiate within these five business days after these documents are received, you can not cancel your contract due to any issues that you find within these documents.
It’s an oldie, but here’s a segment we did on NBC News explaining the importance of understanding this concept, click here to view.
Please click here for a sample disclosure.
"As one grows older, one becomes wiser and more foolish." - Francois de La Rochefoucauld
Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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