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Part Four

unpleasantly surprised if he learned, after closing, that the covenants prohibited RVs from being parked anywhere on the property. When purchasing a condominium, townhouse, or other property that requires the payment of dues and assessments, you should ask for and review the financial statements of the association. You may also get copies of the minutes of the past two or three meetings. These will help you determine if the association is financially viable—if it has established reserves to cover major periodic maintenance such as roofs, paved parking areas and painting. If reserves are not substantial enough, homeowners could be faced with future special assessments. That is, every homeowner is asked to pay a set amount (sometimes amounting to thousands of dollars) to pay for a needed improvement to the whole complex. If you review the minutes or place a telephone call to a member of the association board of directors, you can also get information about what the association is planning. These are all things that should be disclosed to you in the title documents. You will have an opportunity to review these documents, and it is important for you to voice any objections before the stated deadline. If there is anything you cannot live with, you will have the right to terminate your contract to purchase the home based on that review. If everything is in order, or at least within your limits of tolerance, then you can move on.

The Appraisal If you are not paying cash for your property—that is, you are having part of the purchase financed with a mortgage loan—then the loan will generally be contingent on a satisfactory appraisal of value. You have the option of including an appraisal contingency if you are paying cash, but it will be required by the lender if you are 122

Profile for Linda DeVlieg Real Estate

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

Profile for lindadev