As America's baby boomer population approaches retirement, they appear to be inclined to downgrade their housing needs, either by purchasing smaller houses or by purchasing condominium units. This is especially true when they opt to retire in the “sun states” of Florida, Texas, Arizona, and California.

A generation ago houses purchased in early marriage were sufficient to last through the retirement years. Now, retirees feel that the homes they raised their children in are much larger than they care to maintain.

Therefore, selling family homes and using profits from the sale to buy condominium units seems to be a logical and workable resolution.

However, experience in buying single-family houses neither prepares retirees for the “new game” of buying condominium units nor alerts them to the things they need to look for as they consider condominium unit purchases.

Potential condominium unit buyers first need to pray for God's wisdom (James 1:5) and His direction. Then, after receiving God's peace and His direction, they need to seek legal counsel before any decision is made. “A prudent man sees evil and hides himself, the naïve proceed and pay the penalty” (Proverbs 27:12).

Good counsel
“A wise man will hear and increase in learning, and a man of understanding will acquire wise counsel” (Proverbs 1:5). The Word of God instructs us not only to seek His guidance but also to seek wise counsel from those who are knowledgeable and whose value systems are compatible with ours before making important decisions.

Before any decision is made regarding purchasing condominium units, prospective buyers need to consult with their attorneys and have them thoroughly read and understand the covenant of condominium—also called a master deed or declaration of condominium. Generally, all condominiums and condo associations have a covenant of condominium that must be signed by buyers before a deal is finalized.

However, because clauses in the covenant are nonnegotiable and are legally binding to buyers, there could be unnoticed or cleverly worded traps in the covenant that could legally bind the potential buyer to the purchase of a condo unit without realizing it.

Attorneys trained in such legal documents should be able to identify any uncertain, vague, or cleverly worded statements and advise their clients to avoid the purchase.

Common traps
There are many different traps and legal pitfalls that appear in various covenants of condominium documents. The following are the ones most frequently included.

1. Resale restrictions. Most condo associations have a 30-, 60-, or 90-day right of first refusal. Because the Federal Housing Administration, Veterans Administration, and other government insured mortgages generally are not available when there are certain time restrictions, this delay could cost sale potential because it reduces the resale market significantly.
   
2. Use restrictions. Some owners buy condominium units for investments. Therefore, they need to rent out the units in order to make any money. Many covenants of condominium or condo associations forbid owners from renting out their condo units.
   
   Additional restrictions could include children, pets, individualized improvements (such as window decorations or the color of paint), or any number of other things that could be interpreted as being disruptive to the continuity and constancy of the condominium.
   
3. “Unbeatable” deals. The most common “unbeatable” deals are the ones in which a developer owns or manages the condominium common areas and leases them back to the condo association.
   
   These leases are usually long term and include escalator clauses and pass-alongs that could cause huge jumps in monthly association fees; and the owners are required to pay the increased fees. The best deal for owners is for the condo association to own and manage all common grounds.
   
4. Subsidized fees. Developers of newly built condos often manage common areas for a very low fee until most of the new units are sold. Then when the condo association assumes management, the owners' monthly fees soar.
   
   Because of their signed covenant, owners are legally bound to pay the fee, regardless of increases.
   
5. Defective construction. Before purchasing any unit, potential buyers need to have an engineer inspect the condition of the entire property, not just the unit that is to be bought, because if the condo association needs to make any repairs all owners will be assessed for the cost.

Conclusion
The best times to purchase condominium units are during the preconstruction sale of the units. Don't buy too early, though, because as long as many units remain unsold investments will likely not appreciate.

Potential buyers need to do their homework, investigate similar condos in the area, and avoid making any decisions without receiving God's peace through prayer and seeking legal counsel.