The condo questionnaire is a long form full of questions that a condo association manager must fill out and return prior to a lender approving financing for a particular buyer in that community. Generally this is a stage on the condo buying process that happens within the first 1-2 weeks after a contract is signed and executed, and a lender has begun working on financing the buyer. The answers to these questions about the condo association and condo management company are a way for the lender to assess the risk level of the condominium where they will be potentially investing/lending money. If the condo association isn't being run well, or if there is significant risk, the lender can decide not to lend money there and the buyer's sale contract can potentially die as a result.
Who pays for the Condo Questionnaire to be filled out?
There is a short version, and a long version required by lenders. Which version needed depends on the lender and the financing program. Answering the questions is a very tedious task for anyone, and time consuming. As a result, the condo association / management company normally charges a fee to fill out and submit. That fee is normally paid for by the prospective buyer.
There are circumstances where, if a condo building is large and/or has a lot of buying and selling regularly, the condo manager may keep a current version of this form filled out and on file. In these cases, often there is no charge to each individual prospective buyer. There is no set fee and no rule about who pays, so it is possible in a sales contract for the buyer to stipulate that the seller is responsible for paying the condo questionnaire fee.
TIP FOR OWNERS OF CONDO UNITS: when you decide to sell, request a completed copy of the this form from your condo manager. Even if its a copy of answers given last month or three months ago, the majority of information will still be helpful in your selling process. Some questions would still need to be updated, but the majority will give great and needed information to your real estate listing agent and to your prospective buyers.
How many unit owners are 60+ days delinquent in paying monthly dues?
If a unit owner is delinquent and there is a foreclosure, is the mortgagee responsible for paying arrears?
Is the association involved in any pending litigation?
Does the developer or any one unit owner own more than one unit? Does any one owner have controlling interest in the condo association?
Amount of reserves?
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