Since the decisions of the board have a big effect on you and your pocketbook, it’s important to get a copy of the bylaws and read them before you commit to buying in a CC&R governed development. Getting copies of the last several board meeting minutes can’t hurt. They can give you an idea of what problems the development has and if any major cost assessments are looming. It’s also good to know how much the association has in reserve.
Sarah learned about the importance of checking the association’s finances the hard way. After she bought a condo, she learned that the secretary/treasurer had been arrested for embezzlement of nearly $13,000 from association funds. A special $400 assessment was levied against each homeowner to make up the loss so bills could be paid. True, this may rarely happen, but you could buy into other problems that can easily cost as much if you don’t check the finances.
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