Sign up for our Email Newsletter	NEW JERSEY REAL ESTATE LAWYERS & NEW JERSEY WILL & ESTATE PLANNING LAWYERS The Law Office of James M. Miner, LLC Westfield - (908) 232-9962 directions Short Hills - (973) 315-3089 directions Fax - (908) 232-9965
Buyers Lawyer \| Sellers lawyer \| Contact \| Client Log In \| Real Estate Blog

ARTICLES : Main Menu

ARTICLES : Real Estate Condo : Back To Articles Menu : Real Estate Learning Center

IMPORTANT INFORMATION WHEN BUYING A CONDOMINIUM

When shopping for mortgages on condominiums, most lenders will look for the development to meet certain requirements normally referred to as Fannie Mae or Freddie Mac guidelines. Fannie Mae and Freddie Mac set forth minimum standards a condominium association must adhere to as set forth in the association's Master Deed and By Laws. These standards include:

Maximum number of investor units permitted and/or held by one individual;
Insurance coverage for the common elements, reserves and directors/officers;
Ownership interest in the common elements and amenities;
Future development plans within the community;
Control of the association by the developer and home owner's association;
Maintenance of a Budget and Funding for Replacement of Capital Items;

Before contacting a mortgage lender, be prepared to have answers to the questions below. Although there are additional questions to be answered, this information should get you off to a positive start. Most mortgage lenders have a questionnaire the association, management company or developer must complete prior to granting a request for a mortgage. If you can, obtain a copy of the lender's questionnaire prior to applying (if you've already had one completed, provide it to the prospective lender. Although the lender may require their own questionnaire, it may give you some preliminary direction.) Have the lender review the completed questionnaire prior to submitting the mortgage application and paying the application fee, points, etc.

How many units are built and sold? If there is new construction going on within the development , how many units are planned?

Of the units which are built and sold, how many are investor units?

Does the developer (if applicable) maintain a majority control over the Association?

Are the amenities (clubhouse, pool, tennis courts, etc.) complete and available for use by the homeowners?

If you are not familiar with the legal aspects of condominium home ownership, make sure the attorney handling your purchase has experience in condominium law. You can also find useful information from the Community Association Institute (CAI) at www.caionline.org. The CAI web site can provide you with valuable information about community associations.

[Back to Top]

[printer friendly] [Back To Articles Menu] [Real Estate Learning Center]

privacy policy : disclaimer : site map :
Copyright © 2002-2008 James M. Miner. All Rights Reserved. New Jersey real estate lawyer Internet Marketing and SEO by Serr.biz LLC