1. What is a condo (condominium)?
2. What is a loft?
3. What is a town home?
4. What is a Co-op?
5. What is a better investment condos or single family homes?
6. Are condos or town homes risky to buy?
7. Are condos a good investment?
8. What is a good process to find a condo?
9. What determines the value of a condo?
10. What are the most important elements to look at when buying a condo?
11. What is the process for buying a condo in a building that is not built yet?
12. What is an Association?
13. What determines the association fee?
14. What are standard amenities are typically included in the association fee?
15. What are bylaws?
16. What are typical upgrade special amenities that may be included?
17. What is the right of rescission?
18. What kind of financing can be used?
19. What type of insurance is needed?
20. Do condos have to be accessible for handicapped?
21. Can a condo association ban smoking?
22. Where can we find condo laws?
23. What are rules for pets?
24. What is an Association special assessment?

1. What is a condo (condominium)?
A condominium does not refer to a style but a form of ownership. With a condominium you own the space within your walls, floors and ceiling with a common ownership interest in the common areas, which are shared by all owners.

2. What is a loft?
A loft is a common miss-use term in today’s market place.  A loft refers more to a style than a form of ownership.  Traditionally a loft has been defined as a unit with high ceilings with an upper level that looks down to the lower level.   Usually lofts are conversion projects from an older industrial or warehouse buildings.  Typically lofts are condominiums or Co-ops.

3. What is a town home?
Townhome refers to a form of ownership. With a townhome you own the spac within your walls and the ground beneath and the air above. Usually there are separate entrances and garages.

4. What is a Co-op?
Co-op is a form of ownership. With a co-op the building is thought of as a company with each owner owning a % share of the building based upon your units value.

5. What is a better investment condos or single family homes?
Using appreciation as a measure, condominiums in some areas have been as profitable an investment as single-family homes in the last five years. And in some markets, condos appreciated even more, according to some experts.

While single-family homes have been the preferred investment by home buyers, changing demographics are helping make condos more popular, especially among single home buyers, empty nesters and first-time buyers in high-priced markets.

Also, the condominium community has worked hard in the last few years to overcome image problems brought on by homeowners association and developer disputes as well as all too frequent construction-defect litigation

6. Are condos or town homes risky to buy?
While condos never had the kind of appreciation experienced by single-family homes, most ultimately have not lost value, say some experts. And with high prices in many urban markets and more single homebuyers in the market than ever before, the market for condos is strong.

As with any home purchase, you should do your homework about the neighborhood or development before you buy. In the case of condominiums, it is important to read the past six months of homeowners association minutes to see how effective the board is and to learn about any possibly detracting issues (such as protracted litigation with the developer).

The condominium community has worked hard in the last few years to overcome image problems brought on by disputes and lawsuits. Associations are becoming more sophisticated about property management and taking steps to prevent legal problems and disputes

7. Are condos or townhomes a good investment?
While condos never had the kind of appreciation experienced by single-family homes, most ultimately have not lost value, say some experts. And with high prices in many urban markets and more single homebuyers in the market than ever before, the market for condos is strong.

As with any home purchase, you should do your homework about the neighborhood or development before you buy. In the case of condominiums, it is important to read the past six months of homeowners association minutes to see how effective the board is and to learn about any possibly detracting issues (such as protracted litigation with the developer).

The condominium community has worked hard in the last few years to overcome image problems brought on by disputes and lawsuits. Associations are becoming more sophisticated about property management and taking steps to prevent legal problems and disputes

8. What is a good process to find a condo?
The best process is to enlist the services of a real estate agent who specializes in the type of housing you are looking for. An agent will know all current listings and non public listings. They will also aid in the decision making process. The number one reason to use an agent is that it will cost you nothing! They receive their commission form the seller. To find a specialist visit (www.condobuzz.com) .

9. What determines the value of a condo?
The value of a condo or any other real estate is determined by the ultimate buyer. A seller can place any price they want for their real estate, if nobody makes an offer then that is a pretty good indicated the price is too high. Listed below are factors that will affect value.

Factors that affect value;

• Location in the country
• Location in the state
• Location in the city
• Location in the neighborhood
• Condo building
• Location within the building
• Views and closeness to top floor
• Parking
• Square footage
• Number of bathrooms
• Decorating

10. What are the most important elements to look at when buying a condo?
Number one, will you really be happy there. Spend some time in the building, walk around the building, visit local businesses and hangouts, and walk around the neighborhood. Make sure you receive condo docs and review them. Get copies of minute of board meetings to see what issues are important and being discussed. Talk to some residents to get their opinions.

11. What is the process for buying a condo in a building that is not built yet?
Developers will have different procedures, make sure you check and find out what their procedures are. Typically units are first reserved with the right to cancel within a certain time frame. The first thing to do is sign up for notification when units will be available for reservation. Make sure you check the plans and specifications.

12. What is an Association?
An association is the group that runs and manages the affairs of the condo building. Learn everything you can about the homeowners association before you buy into a development governed by one. The association's financial, political and legal conditions are very important to your investment and quality of life.

When run properly, homeowners associations maintain the common grounds and keep civility in the complex. If you follow the rules, the association should not intrude on your privacy or cost you too much in association dues.

Poorly managed associations can drag down property values and make living there difficult for residents. Start by studying the association's covenants, codes and restrictions, or CC&Rs, and find out if you can live by them. For example, if the rules prohibit loud music after a certain hour and you like to play your CDs late at night, this may not be the place for you. Don't move in thinking you can get away with violating the rules or change them later because you may find yourself in turmoil with determined neighbors firmly in control of the association board.

Find out all you can about the association's finances. Beyond reviewing the budget, talk to the association treasurer and find out if dues are expected to increase and if any special assessments are planned. Ask if special inspections have revealed problems with roofs or plumbing that may cause a dues hike or special assessment later on.

Call and meet with the association president.

13. What are association fees?
Association fees are the fees you pay to live in a particular condo building. Fees are normally paid monthly and are not negotiable. If you do not pay the association can take legal action and enforce a lien and forclosure of your unit.

14. What are standard amenities are typically included in the association fee?
Condomimiums usually include more utilities in their fees and have more shared amenities. Some of the factors that may impact the fees include the age and condition of the buildings, the number of units to share the costs, and adequate reserve accounts for long term maintenance. With each association being different, here is list of what might be included:

Garbage removal Basic cable TV Landscaping Outside building maintenance Replacement reserve accounts Pool maintenance Elevator service Legal costs Staff salaries Caretaker's unit (PITIA)

Heat Air conditioning Building insurance Electricity or gas Sewer and water Snow removal Lawn care Professional Management Accounting services Cleaning services

15. What are bylaws?
 

16. What are typical upgrade special amenities that may be included?
Townhomes usually have few to none, while condominium amenities might include:

Indoor or outdoor pool Tennis court Party room Exercise room Whirlpool Pool maintenance Sauna Guest room Storage areas

Game room Racquetball court Hobby room Volleyball court Playground Golf putting green BBQ area Security system

17. What is the right of recission?
The right of recission gives a person time to review condo documents before they are committed to purchasing a unit. Under the Minnesota Common Interest Ownership Act ( MCIOA ) a purchaser receives a 15 day right of recision to cancel a sale. The law covers all condominiums, townhouse associations created after June 1, 1994 and other associations if they elect to be subject to the law. The seller is required to provide the buyer with a copy of the bylaws, articles of incorporation, declarations, covenants, rules and regulations, the most recent budget and financial statement , and a resale disclosure certificate prepared by the management company or the association's authorized representative. The recision period starts from the day the purchaser receives the documents, and the buyer may choose to cancel the sale for any reason.

18. What kind of financing can be used?
The financing of a condominium or townhome is different than getting a new mortgage on a single family home. The whole development, or phase in which your unit was built, needs to have PROJECT APPROVAL for the particular type of financing you are obtaining. The different types of approvals are FHA, VA, FNMA, and FHLLB. The governing bodies approval is for a certain period of time and require the homeowners association to reapply to keep their approvals current. They must meet owner occupancy ratios, have required minimum reserve accounts, meet property construction standards and other guidelines.

19. What type of insurance is needed?
Condominiums have a blanket policy for building insurance and it is included in the association fee. Coverage for your personal property is not included and is optional, but recommended. In townhomes some associations have a blanket building policy and others do not, and you would need to purchase a separate policy just like in a single family home.

20. Do condos have to be accessible for handicapped?
The 1990 Americans with Disabilities Act does not require strictly residential apartments and single-family homes to be made accessible. But all new construction of public accommodations or commercial projects (such as a government building or a shopping mall) must be accessible. New multi-family construction also falls into this category. In all states, the Federal Fair Housing Act provides protection against discrimination for people with physical or mental disabilities. Discrimination includes the refusal to make reasonable modifications to buildings that aren't accessible to the disabled. Two educational brochures, "Housing Rights" and "Discrimination is Against the Law," are available through the Department of Fair Employment and Housing by calling (800) 884-1684.

21. Can a condo association ban smoking?
A homeowners association's board of directors can restrict smoking if it applies to indoor common spaces such as hallways or recreation rooms. Outdoor spaces are a different story, say legal experts. Any restriction would probably hinge on local laws (i.e. if a city banned smoking outdoors, a homeowners association probably could restrict smoking in its outdoor spaces).

Typical covenants, codes and restrictions, which govern condo associations, give the board authority to make and enforce reasonable rules for the use of common property. But that would not apply to interior spaces owned by smokers themselves

22. Where can we find condo laws?
Search condo laws in the state you live.

23. What are rules for pets?
The policy on pets would be stated in the rules and regulations or bylaws. Apartment style condominiums are the most restrictive, usually not allowing dogs, and only about one third of the developments allow cats. Manor style condominiums will usually take cats and dogs up to 25lbs. Townhomes typically are OK with either as long as you follow the conduct rules

24. What is an Association special assessment?
A homeowners association has the right according to their association bylaws to levy a special assessment just like city governments. If there isn't enough money in reserve accounts for a maintenance expense, the association usually has no choice but to raise the association fee for a certain period of time or levy special assessment to pay for it. A well run association will have all future long term maintenance items accounted for, and reserve accounts figured in their budget.