3. What are

the pros and cons of condominium living? A condominium can be attractive

and affordable, yet buyers should understand the drawbacks. "One

of the great attributes of a condominium is that you don't have to mow

the lawn or fix the [building's] plumbing," Binder said. "However,

people are [living] in close quarters, and the people living next to you

will be able to sell or rent their unit without your input. There is a

degree of uncertainty about your neighbors."

4. What are

CC&Rs? Homeowners association governing documents and rules go by

different names in different parts of the country. Examples include "covenants,

conditions and restrictions" (CC&Rs), "bylaws," "the

master deed," "the rules and regulations" or "the

house rules." Condominium buyers should thoroughly read and digest

the governing documents and rules that are binding on all the owners.

Co-op buyers should inquire about "right of first refusal,"

which may give the board the right to evaluate prospective owners and

acquire a for-sale unit in their shoes if they are deemed unacceptable.

5. Who pays

for the insurance? An owner's financial interests should be protected

the structure of the building, the common areas and liability for any

injuries that occur in the common areas. The owner's policy should cover

his or her personal property and liability for any injuries that occur

inside his or her unit. Always consult an insurance professional for advice

about your personal situation.

Back

to Real Estate Home Page |