Selling a condo has a few more steps involved than selling a single-family home. First the seller needs to order a resale certificate, which will disclose to the buyer if there are any impending Home Owners Association (HOA) special assessments for the development. A special assessment is assigned when there are not enough reserves for replacements in the HOA budget. For example, if the siding on the building needs to be replaced but was not in the budget, then a special assessment may become the burden for all of the homeowners. Thus, as a real estate broker, it is very important to read the resale certificate to advise our buyer's of this potential cost.
Also note, a resale certificate is only typically good for 90 days. If selling time exceeds 90 days, then the lender may request an updated resale certificate.
Another important question to ask, is if there a rental cap on the development. A rental cap is a limit to the number of renters allowed in a condo or development (also known as owner-occupancy rates). If you own a property with a rental cap and the rental cap has been met, you need to add your name to the HOA waiting list before you can rent out your unit. If you are selling you condo, you will want to disclose if there is no rental cap. A condo development without a rental cap is more desirable to an investment buyer. Condominiums with low owner occupancy rates, under 51% can also have difficulty obtaining financing.
If the HOA is well managed, then selling condominium is not a difficult process. It is important for a real estate broker to help their client through the selling and buying process and ensure the due diligence has been done.