Things to Consider Before Buying a Condo Unit in Massachusetts

Buying a condo can be an exciting new chapter in your life and real estate career, and becoming a homeowner in Massachusetts offers several perks. From the state’s diverse landscapes to its high-quality healthcare system, Massachusetts offers buyers countless benefits and a high quality of life.

When you buy a condo, you’re doing more than investing in a property — you’re buying into a business partnership with your neighbors, tethering your wealth to the building’s condo association, and making a decision that could impact your financial well-being for years to come.

Most buyers place too much emphasis on a unit’s aesthetics and facilities, but understanding the legal and financial fine print in a condo sale is crucial for making an informed decision.

This guide covers everything you need to know before purchasing a condo, including the key legal and financial stress tests you should perform before taking the plunge.

Pros and Cons of Buying a Condo vs. a Single-Family Home

Before buying a condo in Massachusetts, it’s important to determine if and how a condo is more beneficial to you than a single-family home. With differing costs, regulations, and amenities, condos are a unique property investment with an array of considerations.

The pros of buying a condo include:

• Initial affordability: Condos often have a lower purchase price than single-family homes, providing a more accessible entry point into the housing market for those who might struggle to afford a house.
• Less maintenance: Although you will own the unit and be responsible for its upkeep, the community’s condominium owners’ association (COA) will be responsible for the management of all communal and external areas. For example, in winter, your COA will likely be responsible for clearing and shoveling snow on the property.
• Lower insurance: Because your insurance only needs to cover the unit you own, which is solely an interior space, condo insurance is often cheaper than home insurance, which must also cover the external areas of the property.
• Access to amenities: Many condo buildings offer unit owners access to shared amenities, such as gyms, pools, rooftops, security services, and communal social areas. Most homes don’t benefit from such facilities — if they do, they require you to organize maintenance.

Cons of buying a condo include:

• COA fees and regulations: Although their purchase price may be lower, condo owners must pay monthly fees to the COA. Owners must also adhere to the COA’s regulations, which can include pet policies, parking restrictions, and structural modification rules.
• Reduced privacy: Condos are often tightly packed into a building, and owners live close to their neighbors. As a result, condos generally offer less noise control and privacy.
• No outdoor space: Some condos may come with balconies or terraces, but most condo units do not include gardens or green outside spaces.
• Lack of storage space: While many single-family homes benefit from garages, attics, or garden sheds, condos rarely have storage options beyond the main unit.
• Complex ownership: Condo owners may own the space within the unit, but they only own a small portion of the common elements, like the land and structure of the building.

Tips for Buying a Condominium: The Financial “Stress Test”

Before you commit to buying a condo, you need a thorough understanding of the COA’s financial health.

You should assess the COA’s:

• Reserve funds: You should verify that your association has a high reserve of funds, which they can use to cover special assessments, including major repairs and other unexpected expenses.
• Budget and delinquency rates: If a high percentage of the building’s owners are behind on COA payments, it could indicate poor management and limited cash flow.
• 6(d) certificate: This critical document is compulsory under Massachusetts General Laws Chapter 183A, and buyers can use it to verify that the previous owner or seller has no outstanding common expenses.
• Owner-occupancy ratio: In general, condo communities with higher owner occupancy rates are considered to be more stable investments than those with high tenant occupancy. This is due to the perception that owners invest more effort and care in their units and communal areas than tenants, which helps to boost property values in the building.

Key Legal Documents

There are four key legal documents that you and your real estate attorney should review before investing in a condo:

• The master deed: This essential legal document establishes the exact boundaries and specifications of your unit, as well as detailed information about the common elements.
• Master policy: Although the buyer is responsible for insuring their condo unit with a personal HO-6 insurance policy, the COA should have a master policy covering the property and common elements of the community.
• Declaration of trust and bylaws: This declaration establishes the association and sets forth its regulations, which can include common expenses, pet restrictions, parking regulations, and rental caps.
• Meeting minutes: It may be beneficial to assess the last few months of the COA’s board meeting notes to gain insight into common owner or tenant complaints and potential issues.

Why Trust Us When Buying a Home

Condominium law in Massachusetts can be complex and difficult to navigate. At Calabrese Law Associates, our accomplished real estate lawyers have specific experience handling commercial, residential, and condominium real estate matters throughout the state.

With extensive knowledge of Massachusetts condominium and real estate laws, our attorneys can go beyond standard closing protocols to provide in-depth analysis of your condo and COA’s key legal documents, to ensure your investment is sound.

Among other areas, our condominium-specific experience includes:

• Navigating condominium owners’ association disputes
• Preparing condominium master deeds
• Alleged COA regulation violations
• Condo parking disputes
• Lien issues

Having operated in Massachusetts for over a decade, we have a nuanced understanding of the Greater Boston real estate market, providing unparalleled insights and guidance to potential buyers. If you’re looking to buy a condo in Boston or the wider state of Massachusetts, we can help.

Buy a Condo With Confidence

Your decision to buy a condo should be based on more than just a unit viewing — it’s a complex legal commitment that requires extensive document reviews and careful consideration.

Navigating legal and real estate processes is not for the faint of heart, and, without expert guidance, it can be challenging to identify hidden liabilities or protect yourself from financial risks. When you undertake a full document review with the assistance of a professional real estate attorney, you can sign the purchase agreement with confidence.

At Calabrese Law Associates, we offer a comprehensive Unit Owner Protection Program to ensure you know exactly what you’re buying before you commit. Through our thorough document reviews and expert legal guidance, we can help you embrace the exciting chapter of becoming a condo owner.

If you’re considering buying a condo in Massachusetts, contact Calabrese Law Associates for a consultation today. Our experienced Massachusetts real estate attorneys can share their nuanced understanding of the state’s condominium procedures and ensure you’re making the best decision.

This publication and its contents are not to be construed as legal advice nor a recommendation to you as to how to proceed. Please consult with a local licensed attorney directly before taking any action that could have legal consequences. This publication and its content do not create an attorney-client relationship and are being provided for general informational purposes only.

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