What Are Condo Documents
What are Condo Documents and what is included is one of the main questions we getting ask all the time. That's why we thought to write this blog about What are Condo documents.
The Condo Documents are a variety of documents who establish a condominium and will regulate living in a condominium community.
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What are the Condo Documents and what to look for?
If you buy a condo you should receive follow documents and review them carefully. You will later sign that you received, reviewed and understand the documents and especial the Rules and Regulation of the condo community.
Declaration of "The" Condominium
A declaration is one of the most important documents. It establishes lawful a Condominium and should be recorded in the Clerk of Court of the County where the condo is established. It describes the location of the condominium, how the condominium is represented, most through as condominium association, the responsibilities of the unit owners, the responsibility of the condo association, where and what are the common elements and how they can be shared, maintenance by the association, unit owner voting rights and membership, the description of the condo units, insurance requirements of the association and the unit owners, procedure of meetings and voting.
Each condominium has their individual Deceleration prepared.
Articles of Incorporation
The next important Condo Documents should be handed are the articles of incorporation. Here you can find the purpose of the articles, the power it gives the association, the rights of their members, the named directors and officers of the incorporation, a clause that indemnification the directors and officers and the required procedures if the articles need to be amended.
The Bylaws
The Condo Documents include the bylaws and will describe in what manner meetings are called, how they will be held, notices of meetings required, the power of the association, all duties of the director and officers of the association, procedures for amending the by laws, financial information and other important information.
Estimated Operating Budget
This should be the budget for the current fiscal year. Here you can find estimated expense for a unit owner. It also should show you financial information on reserve accounts (escrow for roof repairs, building repairs etc), insurance and all other expense who exceed $10,000. It will give you an overview of the condominium "financial health"
Receipt for Condominium Documents
You need to receive a receipt that you received the condo documents. This is important while you only have a certain # of days to review and cancel the contract if needed due to unsatisfactory review of the documents.
Frequently asked Question and Answer Sheet
This sheet provides you a summary of the covenant and restriction, any leases and the operation of the condominium and association.
Prospectus
If you buy direct from a developer and buy a unit with a building of more than 20 units than the developer is required to hand you a prospectus. This summarizes the condominium and the common elements.
Since each condominium has their own condo documents you should ask your Realtor What are the condo documents and what do they include. You should understand the documents since those regulate the living in your new condo.
Are you looking into buying your first or next condo in South Florida we understand the importance of what are condo documents and can assist you when reviewing the same!
