Condominiums comprise a significant portion of Brookline, Newton and Chestnut Hill home inventory. Simply put, a condominium is nothing more than a legal form of ownership of property. Condominium associations are created by the condominium to administer the property and the responsibilities of all the owners. When an offer to purchase is made on a condominium, it is customary to make it subject to a satisfactory legal review of condominium documents and budgets. The master deed which is a legal instrument by which the condominium is created and is recorded at the Registry of Deeds . The Declaration of Trust which details among other things voting powers of unit owners, administration of rules and regulations, insurance requirements, and maintenance procedures for units and common areas. The unit deed describes the real estate and its percentage of ownership in common elements as spelled out in the master deed.
Condominium budgets generally offer current and planned costs related to the association's expenses for a given calendar year, and is used to determine monthly condo fees. Fees will vary greatly from one condominium project to another, dependent on size of unit, amenities, condition and on-going maintenance costs. Smaller, self-managed associations without elevators or security might be expected to carry lower monthly expenses than an association that pays for professional management, 24-hour lobby security and has a swimming pool to maintain.
While condominiums come in many shapes and sizes, it is useful to know basic questions to ask, and review your own lifestyles and motivations to decide the best living arrangement for you. Smaller 2- or 3-family condominium conversions often offer more intimate living and yard space in residential neighborhoods, but may carry more responsibility and involvement in maintaining the whole property than say, a larger converted apartment building that is professionally managed and run by elected trustees who make daily decisions on behalf of unit owners.
Knowing something about the percentage of owner occupancy in an association may sometimes provide a benchmark for anticipating owner cooperation in maintaining a property, and may impact bank financing options, as well. It's also useful to know the history of and need for future capital expenditures relative to capital reserves. Larger associations typically set aside a portion of their monthly fees in anticipation of future maintenance costs, while smaller associations may prefer to hold their money until such time as repairs or improvements are necessary, and assess the costs to unit owners in lump sums. One method is not necessary better than another, but it does behoove a buyer, and seller, to know the impact of association variables on price.
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