Problems sometimes arise when you don't know what questions to ask. Here are three questions you should ask your condo board:
1. What percentage of the building's apartments are currently rented (not owner-occupied)?
If more than 50% of the apartments in the building are rented, any new buyers into the building will need to put 20% down to qualify for financing.
2. What is the average percentage of owners who are 30-days or more late with condo fee payments?
If over 15% of the owners are 30-days or more late with condo fee payments, a buyer's lender will need to apply for an exception to the requirement in order to get the loan underwritten.
3. Does any one person own more than 10% of the building?
If one person owns 10% of the condominium, that will make financing even more challenging for a buyer than it already is today.
When you read Beny Kass' article, you'll understand how important the answers to these questions are to the financial health of your condominium building. If there's a problem with any area, it will make it more difficult to sell in the building and could limit sales to cash-only since financed purchases won't be possible.
Now you know so be sure to ask!