Guide to Listing and Buying Condos

Here is a link to our Master Condo Property Data sheet which has information about the local condo complexes.  Please feel free to update the complexes if you obtain new information about them.

When representing the Seller - 

1. Get a copy of the Rules and Regulations for the condo complex. Have these available for potential buyers. There is typically a fee to the seller to request these docs ($15 is typical)

2. You will need to order a Smoke inspection in MA. Once we approach the closing date, your Seller will need to have the smoke and carbon monoxide detectors in their home inspected by the fire department. You can click here for a copy of the Massachusetts guidelines and give them to your client, but we suggest calling the local fire department for their most updated guidelines. Once they are ready for inspection, please call the fire department and schedule the inspection (the fee is typically around $50, but please confirm with your local fire dept). The certificate is only good for 60 days, so we do not want to do this too soon in case we run into any delays.

3. Prior to closing your seller will need a “clean” 6D Certificate from the condominium complex. Assuming the unit owner has been regularly paying their condominium fees and any special assessments, then the 6(d) certificate will reflect that there are no unpaid common expenses. This is commonly known as a “clean 6(d) certificate”. Typically, a few weeks before the closing, the TC will request the certificate from the condominium trustees or the property manager, the seller will have to pay a fee, obtain the certificate, and provide it to the attorney, who will bring it to closing.

4. Make sure to know and disclose the pet policies at the complex.

5. Make sure to know and disclose any age restrictions at the complex.

When representing the Buyer - 

1. Before showing your client condos, verify the condo complexes you are showing will allow your clients loan type as some condo complexes are not VA or FHA approved. You can use the websites below as a guide, but you should always verify with lender as the following websites might be out of date:

Using an FHA loan on a Condo Development that is NOT already FHA approved, some lenders can offer a "spot" approval of a single unit.  Note, that one of the restrictions when doing so is that no more than >10% of the units can already have an FHA mortgage on them.

• • Here is the website to look up FHA approved condo complexes

  • Here is the website to look up VA approved condo complexes

Please note that some lenders will do “spot” approvals meaning they will still lend in a complex that is not FHA approved so check with your lender on this possibility.

2. If your clients have pets, make sure you check the pet policies as some complexes restrict certain pets (ie dogs) or they may restrict by weight or total number of animals

3. If your clients are looking for over 55+ make sure you are aware of which ones qualify.

4. If you clients are looking to rent out the unit, make sure they understand the rental rules.  Some complexes limit the amount of people that can be renting at once. For instance let's say you have a 100 unit complex that says that only 10% of the units can be occupied by renters and 10 units are already being rented out they might not be able to rent theirs out.

5. In the offer make sure you include the following in other provisions “Subject to review and acceptance of condo documents, rules and requirements, By-Laws, financials and meeting minutes.”  *You should request this information from the listing agent

• Please note that sometimes there is a fee for a copy of the condominium documents (fees vary but could range from $75-$100) and this fee is typically the buyer’s responsibility.

• Meeting minutes - request copies of the last two meetings which will give your buyer information about any pending assessments that might be being discussed). 

• Financials - Need this to see where the reserves are at. if that fund is low and the roof goes kaput, guess who's paying? Yep, your buyer. Lenders will require a condo questionnaire to be filled out , Here is an example of what that will look like. There will be a fee to the buyer for this. 

6.Who Manages the Property? Is it professionally managed or is it Bob from unit 6 who's always in pajamas? Big difference in how smooth things run.

7.What's the Parking Situation? Is parking included, what about for guests? If not, what's it gonna cost? In some areas, a parking spot can go for an arm and a leg.

8.What's the Owner-to-Tenant Ratio? Too many renters can affect the community vibe and even financing options.

9. Verify with list agent that the condo complex does not have first right of refusal on the unit.