What do you need to know before you go out and make an offer on a Chicago Condo?
On any given day during your home search, you will come across many Chicago condos for sale in the current buyer's market in Chicago. So, what should you do before you decide to buy a new condo?
Ask to see the minutes of the condo association. This will allow you to see common complaints or issues that other members have been talking about.
Is it plumbing or the lift that's frequently breaking down? Is the management having difficulties running the condo affairs smoothly? Does this condo association fit your personality and needs?
Are the members paying their condo fees regularly? If they are not paying, it may be either because members are not happy with the board or that the association is under-funded.
If the Chicago condos for sale that you have short-listed are going for a song, it could mean that that there are some serious problems with the property - so check it out! Being in a badly managed apartment block could be a serious headache for you.
Is there a reserve fund? Having no reserve fund can spell trouble when major work needs to be undertaken as the apartment ages and repairs become necessary.
Does the association have a proper insurance cover for the whole apartment block? Even if you look at nothing else, get a copy of the certificate of insurance, which is a summary of the association's policy.
Check if the replacement costs are covered adequately. Then make sure that the policy has a building-ordinance clause, this will help when the building has to be rebuilt to bring to code. Finally, make sure that you understand exactly what the association policy covers and what you are responsible for.
Get a lawyer and/or insurance agent to explain the points if you do not understand any clause under the insurance policy.
Are there any restrictions? Are the condo laws consistent with state laws?
Again seek help from real estate lawyers. A condo involves many more rules and by-laws. So, contact a local real estate lawyer and have him or her go over the bylaws of the association.
Do they make sense? Are they consistent with the state laws? Some laws may be contradictory; be sure to get them clarified.
Are renters discriminated against? If the renter population is over 10%, there should be clear rental policies, either listed in the by-laws or tacked on as amendments.
Ask other tenants about their experience. In addition, ask to see the association's rental lease, and have a real estate lawyer look it over. Of course, these by-laws can be changed any time.
Do I have to manage my condo block? Watch out for a condo whose owners manage the place themselves. These could mean problem for owners who live away.
If the complex is professionally managed, check out the management company thoroughly. Ask other owners, people in nearby buildings. And be sure to interview the day-to-day manager directly. Bad managers can mean sleepless nights.
