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In the video above we talk about three important criteria for evaluating a condo community, and those items are incredibly important but aren’t the entire story. Purchasing a condo means that you’ll be living in a building with a common set of expectations and rules to make it easier for everyone to equally enjoy the shared spaces like hallways, elevators, and building amenities. The development and implementation of these rules falls to the Homeowners’ Association (HOA), which will either be administered by a professional property management company, or self-managed by the homeowners.
One of our responsibilities as your agent to is to make sure you understand the rules and expectations regarding pets, parking, parties, and people. These four areas have the most potential for misunderstandings among condo owners, so it is essential to us that our clients find a community that fits their lifestyle.
Just like buying a condo in any city, when buying a condo in San Francisco it is imperative to thoroughly review and understand the association documents. These documents will include items such as the Homeowners’ Association meeting minutes, Covenants, Conditions, & Restrictions (CC&Rs), financial and budget statements, bylaws, and any articles of incorporation. These HOA documents give a prospective buyer a good understanding of the financial health of the association and disclose any potential red flags.
We’ve reviewed hundreds of condo disclosure packages over the years. We will ensure you know the relevancy of a condo with a high number of homes with unpaid HOA dues, consistent or unresolved building litigation, or frequent complaints from current residents and owners. In San Francisco, it is the seller’s responsibility to provide these documents to the buyer so they can be reviewed, ideally before making an offer. In the event that the HOA documents are presented after an offer is accepted then their review becomes a contingency for the buyer and the contract may be cancelled if they contain information that is unacceptable*.
Please take a moment and download our 10 tips for reviewing HOA documents.
* – Disclaimer: We are not attorneys and do not give legal advice. We are Realtors that have worked with many buyers and sellers over the years and we blog about how we advise our buyers in writing purchase offers. Although many forms are standard in real estate, those in your transactions may differ.