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I think the sellers should provide them as a condition of your offer.
If I ever buy a condo again, I'd want the financial statements and would have my real estate lawyer look them over to see how sound the financials are (or aren't). Live and learn!
I have always ask for condo docs prior to submitting an offer for my clients. You should also see if the seller filled out a seller's disclosure and review that as well. Have your agent request the info from the sellers agent.
I think the sellers should provide them as a condition of your offer.
If I ever buy a condo again, I'd want the financial statements and would have my real estate lawyer look them over to see how sound the financials are (or aren't). Live and learn!
lawyers are not necessarily good with math / accounting.
Just ask for them. Buying into a condo association is a big step and you and your bank will want to know if the association is in good shape.
We had a client that wanted to buy into a small condo assoc. and her bank wouldn't make the loan because the assoc. didn't have enough of an insurance policy against flooding. Our client was going to have to buy her own policy at a considerable cost so she didn't buy that condo.
You will also want to find out if there are any upcoming assessments. Imagine moving in and 2 months later you get wacked with a big bill to replace the condos roof.
If the Association is slow or reluctant to give you what you ask they may be hiding something...
My lawyer is a real estate barracuda. I want her on my side and I'd trust her to be able to read condo financials. Unless, of course, she was the seller.
Wouldn't it be nice if there was a website that reviewed condo associations? ie, complaints, makeup of owners with or without children, how units are rented, are the board members very strict about the rules/regulations, that kind of information.
I have always ask for condo docs prior to submitting an offer for my clients. You should also see if the seller filled out a seller's disclosure and review that as well. Have your agent request the info from the sellers agent.
Not necessarily the case in the OP's situation, but I've found you don't always get them just because you've asked for them. I'm listing a condo right now and my client has refused to provide me with the financial statements for the association until there is an accepted offer. The seller feels it's "no one's business" until they have a vested interest. I've also found there are many condo owners who don't realize it's a good idea to hang on to these documents. They're often paired up with agents who aren't proactive enough to motivate their clients to get copies prior to going on the market. In those situations, it can often take days if not weeks to get those documents from the management company or trustees depending upon how well the association is managed. In a seller's market like we're in today, you just can't spend that kind of time waiting to make an offer.
In an ideal world, I would love to get the docs prior to making an offer. However, I find the majority of the condos I write on the offer includes a condo doc review contingency.
I would also add that with it not being a requirement in this state I don't often see disclosure statements in this area. It varies from town to town but I generally don't ever see them until I get at least a few towns away from Needham.
I agree with sandyjet. A CPA (especially one who is well-versed with condo association financials) will understand the documents better than a lawyer. In MA a condo association with more than 50 units is required by law to have a review done (audit, review, compilation are the 3 levels of financial statement services performed by a CPA). If the one you're looking at has more than 50 units you can request a copy of the prior year's review which will have the balance sheet (the reserve fund is the most important line item on this), income statement, statement of members equity, cash flows, schedule of repairs and maintenance, and schedule of future major capital replacements. If there are no certified financial statements, then you basically take whatever the Board is willing to give you.
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