3 Red Flags to Look Out for When Buying a Condo

For many, the idea of buying a condo is more appealing than a traditional home. Usually they are more affordable and do not require a major amount of maintenance or yard work. As a condo owner you may also reap the benefits of amenities that a single-family home may not offer, such as a pool, workout room, and clubhouse for large gatherings. You may find you prefer the built in community that condo life provides. If you are considering a condo purchase, here are 3 red flags to look for before you close the deal.
1. Too many vacant units.If you are buying in a recently built condo community, then a few empty units would be understandable. However, in an established condo complex, you’ll want to discover how many are on the market and how long they have been up for sale. A high rate of turnover is a good indicator that something is amiss. While you are at it, you may also want to find out if the majority of the condos are owner-occupied or rented.
2. Common areas rundown, out of order or in need of repair.When you buy a condo you also take on shared ownership of the common areas within the complex. There is risk involved with common ownership. Unlike a single-family homeowner, you can become responsible for a variety of issues, through no fault of your own, due to your fractional ownership. For example, if the property has a swimming pool, you’ll need to look into the insurance policy that covers it and find out if the safety standards are up to code. Also ensure that aspects that are included with your condo purchase, but outside of your individual unit are in working order. 
If you are guaranteed the use of a gym or laundry room, make sure that they are all usable and in good repair. The same is true of the community’s exterior and natural areas. Who is responsible for painting, mowing, and overall maintenance? Unsafe, unfinished, or unrepaired common areas could affect your ability to obtain a condo loan as well as your ability to resell the property down the road.
3. Are any property owners or the POA involved in litigation?Try to get as many facts as you can before buying into a condo complex that has pending litigation among any owners, residents, builders, or developers should. Could it tie up the property owner's association's funds for a significant period of time delaying needed maintenance and repairs or planned improvements? Could attorneys fees, potential fines, or uncollected dues cause financial distress for the POA?