When you buy or sell real estate, you can expect the following basic documents: an offer to purchase, followed by a purchase and sale agreement, concluding with a deed transferring title to the purchaser. When it comes to transferring ownership of a condominium unit, however, there are some additional steps and documents involved, so the Buyer understands not only details about the unit, but also requirements regarding the condominium association.

Review Condo Docs

Condominiums typically have their own sets of governing documents; as a Buyer, you should request a review of the “Condo Docs.” These include:

  • Master Deed;
  • Condominium Trust Declaration;
  • Rules and Regulations;
  • Meeting Minutes of the Condo Board;
  • Financial Documents of the Condo Reserves.

All of these documents help you to analyze the condominium as a whole rather than just the specific unit you are purchasing. By conditioning your purchase on satisfactory review of the Condo Docs, you can be more confident that you understand and are aware of what your living arrangement will entail.

Inquire About Fees for Condo Improvements

Condo Docs may also offer insight into costs associated with any planned improvements or maintenance of common areas or units. Often these planned improvements are funded by “Special Assessments” or increases in the monthly condominium fee. If this information is not shown in the Condo Docs, ask the Seller to make a representation regarding any planned special assessments or increases in the monthly fee. This will help you to know exactly what the expected financial commitment will be.

Be Sure Seller’s Condo Fees and Charges Are Current

One more document unique to condominium transactions is known as a “6D” certificate, or a certifcate of common charges. The name comes from Mass General Laws c. 183A section 6(d) and verifies that all outstanding condominium fees and charges for the specific unit are up-to-date. Sellers will request this document from the Condo Association/Trust, and most have a form used for all sales. If a Seller is not current on their condo fees, then in most cases they must pay any outstanding balance in order for a “clean” 6D certificate to be issued.

Thorough document review and analysis by the Buyer and accurate disclosure and preparation by the Seller are essential in the sale of condominium units to ensure that all parties’ expectations are met through the transaction. The real estate attorneys at Mountain Dearborn can help you to negotiatiate condo transactions. Please contact us here.

Image: Brett Wharton