How to Buy a Condominium or Townhouse: Practical Advice from a Real Estate Expert on Buying a Condo, Townhome or Co-op »

Denise L. Evans received her law degree from the University of Alabama Law School, with a concentration in real estate, tax, and finance. While a law student, she served on the Board of Editors for the Journal of the Legal Profession, published two scholarly articles, was Director of the Legal Research Department, and clerked with a law firm that had a large real estate practice. She graduated at the top of her class, earning the prestigious Henderson M. Somerville Prize. Afterwards, she spent s

This new addition to our real estate line of products expands on the differences between a single-family home, a condominium and a townhome in regards to ownership. The process of the contract, pre-closing issues and closing concerns are reviewed in a step-by-step fashion.

Introduction
Top 20 Questions of First-Time Condo or Townhouse Buyers
Chapter 1: The Difference Between Condos and Houses
Condominiums
Townhomes
Major Differences Between Condos and Townhomes
Co-op Apartments
Major Differences Between Co-ops and Condos
Financial Comparison of Condo, Co-op, Townhome, and Apartment
Planned Unit Developments
Common Interest Developments
Chapter 2: Different Types of Condo Developments
Vacation Condos
Kiddie Condos
Game Day Condos
Kosher Condos
Leasehold Condos, Co-ops, and Townhomes
Condotels
Limited Equity Condominiums and Co-ops
A Style for Everyone
Chapter 3: The Condo Lifestyle
Are You Willing to Share?
Can You Give Up a Little Control?
Are You Willing to Participate?
Test: Is a Condo Right for Me?
Chapter 4: Legal Overview
Specialized Law
Who Owns What?
Who Owns What in a Condo, Townhome, or Co-op Development?
Who is Responsible for What?
How Much Independence Do You Have?
Owners’ Constitutional Rights
Typical Condominium Rules
Typical Townhome and Co-op Rules
What if the Condo Developer has Financial Problems?
What if a Co-op Board has Financial Trouble?
Chapter 5: Social and Political Considerations
Condo Government
The Homeowners Association
The Cooperative Board
Noise
Privacy
Developments with Residents of Similar Interests
Chapter 6: Deciding What You Can Afford
Working Up a Housing Budget
Calculating the Monthly Housing Expense You Can Afford
Preapproved Loan Amounts
Dues and Assessments in Condos and Townhomes
Co-op Rent and Maintenance
Converting Housing Budgetto Purchase Price
Purchase Price Worksheet (with Examples)
Monthly Loan Constants for a Thirty-Year Mortgage Loan
Mortgage Interest Tax Deduction
Calculate Home Mortgage Tax Deduction Savings
Special Considerations for Co-ops
Vacation Rental Income
Overall Financial Analysis
Chapter 7: Financing Options
Overview of Mortgage Lending
Shop for Financing Early
Know Your Credit Score
Improving Your Credit Score
Less than Perfect Credit
Comparison of Loan Interest Rates and Terms
Points
Common Lender Traps
Prepayment Penalties
Fully Amortizing Loans
Balloon Loans
Adjustable-Rate Mortgages (ARMs)
Interest-Only Loans
Growing Equity Mortgages
No-Document Loans
The Right Loan Arrangement for You
Chapter 8: Different Types of Lenders
Traditional Sources of Residential Mortgages
Specialized Co-op Lenders
VA Guaranteed Loans
FHA Insured Loans
USDA Loans
HUD Loan Guarantees for Native Americans
Fannie Mae, Ginnie Mae, and Freddie Mac
Mortgages from Stock Brokerage Houses
Assumable Loans
Using Retirement Money
Creative Financing Sources
A Dangerous Lending Alternative
Loan Comparison
Loan Comparison Worksheet
Chapter 9: Deciding on Home Features You Want
Location Considerations
Length of Ownership
Use of the Home
Your Particular Unit Features
The Development
Area Amenities
Utilities and Technology
Develop a Checklist
Home Features Checklist
Comparing Properties
Chapter 10: Real Estate Brokers and Agents
Real Estate Professionals
How Agents Are Paid
Sellers’ Agents
Buyers’ Agents
Transaction Brokers
Limited Consensual Dual Agency
Who Does the Agent Work For?
Determining the Type of Broker that is Right for You
Finding a Broker with Condo and Townhome Experience
Special Considerations for Co-ops
Chapter 11: Finding Properties on Your Own
Properties You Won’t Hear About From an Agent
Working without an Agent
How to Find Properties
Special Considerations for Co-ops
Real Estate Agent Etiquette
Sources of Information about Recent Sales
Chapter 12: Asking the Right Questions as You Shop
Getting Information from the Listing Agent
Talking Directly to Sellers
Ten Questions to Ask Sellers about the Unit
Special Questions for Mature Projects
Special Questions for New Projects
Co-op and Condo Conversions
Nine Questions about Finances
Meeting the Neighbors
Health and Safety Issues
Curb Appeal
Chapter 13: How to Negotiate Successfully
Basic Negotiation Tactics
Price vs. Terms
Concentrating on Deal Points
Understanding Offers and Counteroffers
Negotiating Directly with a Seller
Negotiating through an Agent
Negotiating with the Developer of a New Project
Documenting Verbal Negotiations
Chapter 14: Writing a Contract
Earnest Money
How to Personalize Real Estate Forms
Important Clauses You Want in Your Contract
Contingencies
Objectionable Clauses
Miscellaneous Other Matters
Chapter 15: Important Contingency Clauses
Contingencies that Favor Buyers
Common All-Purpose Back Doors
Contingencies the Developer Wants
Clauses the Seller Wants
Chapter 16: Preparing for Closing
Assistance from the Real Estate Agent
Choose a Closing Agent
Select a Title Insurance Company
Deliver Information to the Closing Agent
Finalize Loan Details
Read the Closing Checklist
Order Inspections
Obtain Important Letters
Review Documents
Secure Proof of Association or Co-op Building Insurance
Order Homeowners Insurance
Assist the Appraisal Process
Check with Local Governments
Contact Utilities
Chapter 17: The Closing
Closing Procedures
The Settlement Statement
Other Closing Documents and Procedures
Deductible Closing Expenses
Tax Deductions for Home Purchase Expenses
Chapter 18: Ownership Responsibilities
Participate in Governance
Manage the Management Company
Understand Your Community Personality
Vote Intelligently on Dues and Assessments
Avoiding Problems
Proper Management of Rental Units
Miscellaneous Considerations
Chapter 19: Thinking Ahead to a Sale of Your Condo
Buy What You Can Afford
Buy Smart to Sell Smart
Know the Neighbors
Stay Informed about Your Market
Deciding Whether to Remodel
Recouping Your Investment and Closing Costs
Calculating Profit on the Sale of a Condo, Townhome, or Co-op
How Long Must You Own Your Condo Before You Can Make a Profit on Sale?
Investing in Rental Properties
Estate Planning Issues
Flipping
Overcoming Analysis Paralysis
Glossary
Appendix: Websites
Index
About the Author