When you purchase a condominium, you are buying much more than just than your individual unit and the common areas, you are buying the condominium association. Evaluating the health of an association is no simple matter, it is a quality that can’t be photographed and posted online. Well maintained common areas, are one sign of a healthy association, but new common elements always photograph well. When you consider purchasing a condominium in downtown Minneapolis, you are entitled by law to an opportunity to view the Association’s documents before sale, and if necessary, cancel the purchase if the condominium association’s condition is unsatisfactory. The Crossings condominium is proud of its budgeting process and financial strength. You don’t have to wait until you make an offer to view our association documents. View them now!
Finances
Checkout the 30 Year Capital Plan
Condominiums in Minnesota are governed by the Uniform Condominium Act. This law requires condominium associations to plan for anticipated capital expenses for the next 30 years. The Crossings condominium diligently maintains a 30-year capital plan that details the anticipated life and the replacement cost of all significant capital assets. Before buying a condominium, make sure that you know if there are any upcoming assessments. Typically a buyer must make an offer before they are permitted to see the financial statements, however The Crossings is proud of its strong financial position and is making these documents available online. Read more about planned and unplanned capital expenses at The Crossings and view our 30 year capital plan.
Inspect the Operating Budget.
Condominium Associations can’t print money so they need to be able to cover their operating expenses as they come due. Operating expenses are the day-to-day costs of running the condominium. At The Crossings condo, they include costs like utilities, payroll and insurance. The Crossings condominium’s operating budget for 2015 is $1,901,433 — which includes a deposit to reserves of $640,000. Read more about The Crossing’s operating expenses and view our operating budget.
Attend a Board Meeting
If possible, attend a board meeting before you buy a condo in Minneapolis. Pay attention to the following:
- Is there an agenda that is followed? While rigid adherence to parliamentary procedure may be overkill for a condominium board, some amount of order is prudent and can keep meetings on track.
- Is the Board Dominated by a particular individual? Is the board divided into factions?
- Is there genuine discussion? Some level of disagreement is healthy. A board that always agrees on everything may be a sign that some board members are not actively engaged.
- Is there an open forum where residents may have their concerns addressed? Are residents treated respectfully? Remember, someday you may have a request to bring before the board.
- Is the board competent? Do they show up to meetings having reviewed the necessary documents? Do they understand the issues they are voting on? Are they properly delegating management issues to professional management? A Condominium board should ask the professional management difficult, and probing questions, but should avoid micro-managing or meddling in management company issues.
Check for Pending Lawsuits
Sometimes even ‘winning’ a lawsuit feels like losing. Lawsuits can be expensive and they may come from any direction: board members, owners, renters, neighbors or local government. Lawsuits must be disclosed to you before you buy a condo in Minneapolis, however, it is prudent to inquire with management before you make an offer.
Read the Condominium Documents
Condominium associations are legal entities that are created and governed by legal documents. Residents are permitted to view these documents at any time. At The Crossings, residents may login to a secure portal and view the condominium documents at any time. Prior to closing, you will be provided with the condominium association documents, and if they are not to your satisfaction, you may back-out of the purchase. These documents may be lengthy and intimidating at first, but they are important to read and understand. At The Crossings has chosen to make the its association documents available online for viewing and download. Read more about the types of associations and view the documents online.