Iffy Information on Condos

“How to Buy a Condominium or Townhome,” Second Edition, by attorney Irwin E. Leiter (Sphinx Publishing-Sourcebooks Inc., Naperville, Ill., 2002), $19.95, 180 pages.

If you are thinking of buying a condominium or townhouse, first read this detailed book which explains condominiums, cooperative apartments and townhouses, with an emphasis on the legal aspects.

The author compares condo ownership with traditional single-family homeownership. He explains the differences, especially the common areas owned by the homeowners’ association for the benefit of its members, and the similarities, such as the individual mortgages for condos, just like those for houses.

As an attorney, I question some of the author’s explanations, such as the condominium purchaser’s interview with the officers of the homeowners’ association. Having bought and sold condos in several states, I have never encountered such a procedure.

Leiter writes: “Many associations require this interview before it will release disclosure information as part of the closing process

The book’s primary emphasis is on filling out the detailed forms and worksheets in its appendix.

But there is also much practical advice, such as how to check out a prospective condo purchase. Leiter recommends roaming around the condo complex, talking with prospective neighbors and checking for poor soundproofing. In addition, the author suggests a professional inspection contingency in the purchase contract.

Heavy emphasis is placed on both required and optional seller disclosures. However, some of the author’s statements are open to question. In the section about defect disclosures, Leiter writes, “The buyers can rely on the seller’s representation made on the (seller disclosure) form.” Really?

The book should have included more examples of condominium purchase experiences, good and bad. Real-world examples would have increased reader interest in an otherwise tedious book.

This is an excellent basic book to alert prospective buyers about condo buying. Yet it lacks practical answers to questions about how to avoid buying a bad condominium.