How Can I Figure Out What Repairs a Building Might Need in the Future?

Q: I’m considering buying a new place, and I want to know how a prospective buyer of a co-op or condo in New York can find out what repairs the building might need in the next four or five years. I’d hate to be hit with a huge assessment for repairs shortly after I move in, and I certainly don’t want to unknowingly move into a building with structural problems.

A: You can, and should, find out what problems the board knows about before you agree to buy an apartment. But you can’t foresee everything.

After your offer for an apartment is accepted by the seller, you negotiate a contract. During this time, your lawyer should do due diligence, asking for at least two years of board minutes and sending a questionnaire to the managing agent. The questionnaire should ask about things like how much money is in the reserve fund, the history of assessments, what capital improvements are on the horizon and what debt the building is carrying. The answers to these questions and the board minutes should offer you a clearer picture of what kind of building you are going to live in, and how it is managed.

Source link Real Estate

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