Buying a condo in Andover is exciting, but the smartest move you can make is to read the right documents before you commit. The fine print sets your fees, your day-to-day rules, and your resale options. If you skip it, you risk surprise assessments, financing delays, or restrictive rules you did not expect. This guide walks you through which condo documents to request, what to look for, and the red flags to avoid in Andover and nearby Greater Boston suburbs. Let’s dive in.
Know the rules in Massachusetts
Massachusetts condominiums are governed by Massachusetts General Laws, Chapter 183A. This statute defines how condos are formed, how associations operate, and what records must be kept. The master deed and amendments are typically recorded at the county Registry of Deeds or the Land Court. In Andover, that is the Essex County Registry of Deeds.
You will usually get documents from the seller, the association or its managing agent. Your lender may also require project-level information, including condo questionnaires and project certifications. Eligibility with Fannie Mae, Freddie Mac, FHA, or VA can affect your financing and future resale.
Start with these core documents
Master Deed or Declaration
This is the document that creates the condominium. It defines unit boundaries, common areas, percentage interests, and how votes and expenses are allocated.
- What to check:
- Your percentage interest and voting share and how they are calculated.
- Any limited common elements like assigned parking or storage and rules on their use.
- Amendment procedures and any easements or maintenance duties.
- Red flags:
- Ambiguous unit boundaries or square footage.
- Expense allocations that shift large costs onto certain unit types.
- Transfer restrictions that could limit resale.
Bylaws and Rules & Regulations
Bylaws set how the association is run. Rules govern daily living, including pets, parking, rentals, and noise.
- What to check:
- Board election, quorum, and voting thresholds.
- Rental and leasing rules, including any caps or minimum terms.
- Pet, guest, storage, and home business policies.
- Red flags:
- Strict rental caps that shrink the future buyer pool.
- Frequent or unclear rule changes.
Budget and Financial Statements
The annual budget and periodic financials show how the association operates and whether fees are stable.
- What to check:
- Current monthly assessment and what it covers, such as heat, hot water, insurance, snow removal, landscaping, or management.
- Year-to-date results versus budget and cash on hand.
- Trends in assessment increases.
- Red flags:
- Repeated shortfalls or dipping into reserves for routine costs.
- Rapid fee increases with no clear explanation.
Reserve Study and Reserve Account
A reserve study estimates long-term repair and replacement costs. The reserve account is the money set aside for those projects.
- What to check:
- Date of the most recent study and recommended funding level.
- Current reserve balance and any loans or withdrawals.
- Assumptions for useful life and replacement costs for roofs, siding, paving, and systems.
- Red flags:
- No recent study or a study that is outdated.
- Low reserves with major projects on the horizon.
Minutes of Board and Owner Meetings
Meeting minutes reveal what is really happening. You want at least the past 12 to 24 months.
- What to check:
- Planned or approved capital projects and timelines.
- Discussions of special assessments, fee increases, or borrowing.
- Any litigation, insurance claims, delinquencies, or management changes.
- Red flags:
- Frequent emergency meetings and unresolved disputes.
- References to large upcoming assessments or contractor conflicts.
Special Assessment Notices and History
Special assessments are charges outside regular fees.
- What to check:
- Recent and upcoming assessments, dollar amounts, purpose, and payment schedules.
- Who pays any unpaid portions at closing based on your contract and local practice.
- Red flags:
- Large assessments with unclear funding plans.
- A pattern of frequent assessments that signals weak planning.
Insurance Policies and Certificates
The master policy covers common elements and association liability. You will still need an HO-6 policy for your interior and personal liability.
- What to check:
- Coverage types, limits, and deductibles. Confirm if the policy is all-in or bare walls.
- Whether flood or earthquake coverage is in place if relevant to the location.
- Red flags:
- Very high deductibles that may lead to owner assessments after claims.
- Gaps in coverage or a history of large claims.
Estoppel or Status Certificate
This association-issued statement confirms the unit’s balance, pending assessments, and any liens or complaints. Lenders commonly require it.
- What to check:
- Current balance due and any late fees.
- Pending assessments, judgments, or litigation.
- Validity period, often 30 to 90 days.
- Red flags:
- Unpaid assessments or liens on the unit.
- Disclosed litigation that could drive costs higher.
Litigation and Claims
Active lawsuits or insurance disputes can affect approvals, reserves, and fees.
- What to check:
- Nature of the claim, stage of litigation, and likely financial exposure.
- How the association plans to fund any judgment.
- Red flags:
- Building defects or denied insurance coverage.
- Potential exposure that is large relative to reserves.
Management and Vendor Contracts
Professional management and key vendor contracts shape service levels and costs.
- What to check:
- Term length, renewal terms, fees, and termination rights.
- Any automatic fee escalators or exclusivity clauses.
- Red flags:
- Long contracts with steep penalties to exit.
- Cost escalators without service benchmarks.
Delinquency Reports
Delinquencies affect cash flow and can lead to deferred maintenance or higher fees.
- What to check:
- Percentage of assessment dollars currently delinquent.
- Any single owner with a large balance that threatens cash flow.
- Red flags:
- High delinquency rates or recurring late payments.
Capital Improvements and Maintenance Records
Recent work and warranties help you gauge near-term risk.
- What to check:
- Dates, scope, and warranties for recent roof, boiler, piping, windows, or paving work.
- Whether reserves or debt funded the projects.
- Red flags:
- Thin documentation or disputes with contractors.
FHA and VA Project Approval
Government-backed financing can broaden your buyer pool at resale and support certain lending options today.
- What to check:
- Current FHA or VA approval and any conditions.
- Red flags:
- Loss of approval in a market where many buyers use these loans.
Practical steps and timing in Andover
- Request early:
- Ask for the master deed, bylaws, most recent budget and financials, reserve study, 12 to 24 months of minutes, insurance summary, and an estoppel or status certificate as early as possible. Try to secure these before finalizing your offer or within a short contingency window.
- How to get them:
- The seller or listing agent typically provides the core documents. The association or management company issues the estoppel and may charge a fee. Your attorney can request what is missing.
- Who should review:
- A Massachusetts real estate attorney for legal and lien issues.
- Your lender to confirm project eligibility and underwriting requirements.
- A home inspector or contractor if minutes or reserve studies hint at structural or system work.
- Timeline factors:
- Estoppel validity is often 30 to 90 days, so coordinate with closing and loan approval. Volunteer-run boards may need extra time to respond.
- Costs to expect:
- Estoppel and document request fees vary by association. Management companies often charge to complete lender questionnaires. Confirm who pays in your offer.
How documents affect fees, rules, and resale
Fees
The operating budget and reserves influence your monthly fees and the risk of special assessments. A large deductible on the master policy or a history of claims can increase the chance of owner assessments after a loss. Patterns in prior increases matter, so review several years if available.
Rules
Bylaws and rules define pets, parking, rentals, storage, and use restrictions. They also show how changes happen. The amendment process tells you how easily rules can shift in the future. Make sure the current rules fit your lifestyle and future plans.
Resale and financing
Lender eligibility affects who can buy your unit later. FHA or VA approval, owner-occupancy levels, and delinquency rates can all change the size of your buyer pool. Active litigation or major deferred maintenance can depress prices and slow sales.
Andover and Greater Boston considerations
- Building age and conversions:
- Many local condos come from older single-family or multifamily conversions. Pay close attention to roof, foundation, electrical, plumbing, and heating history. Find out if utilities are shared or separately metered.
- Heating and utilities:
- In New England, fees sometimes include heat, hot water, snow removal, and landscaping. Confirm exactly what your fee covers and what you pay directly.
- Weather exposure:
- Check for flood risk if the property is near rivers or wetlands. Winter can drive seasonal costs, including roof snow management and heating equipment maintenance.
- Resale and financing dynamics:
- Demand is steady across many Greater Boston suburbs, but not every project meets investor or government-backed guidelines. If you plan to use FHA or VA, verify project eligibility early.
- Local taxes and assessments:
- Review the unit’s property tax history and ask about any municipal liens or assessments.
Quick red flag checklist
- Missing or outdated reserve study.
- Reserves far below what the study recommends.
- Large or frequent special assessments with no clear plan.
- High owner delinquency rates.
- Active litigation tied to defects or insurance disputes.
- Management contract with excessive fees or tough termination terms.
- Opaque or frequently amended rules.
- Loss of FHA, VA, or conventional investor eligibility.
- Very high master policy deductible or recent large insurance claims.
Ready to shop smarter
Reading condo documents takes time, but it protects your budget and your future resale. Request the key items early, line up your attorney and lender, and use the minutes and reserve study to spot upcoming costs. If something does not add up, you can negotiate, require fixes before closing, or move on to a better fit.
If you want experienced, local guidance as you evaluate Andover-area condos, reach out to Nancy Fudge for practical, hands-on help from offer to closing.
FAQs
Which condo documents should I review before signing in Andover?
- Ask for the master deed, bylaws and rules, current budget and financials, the reserve study, 12 to 24 months of meeting minutes, the insurance summary, and an estoppel or status certificate.
What is an estoppel certificate and who pays for it?
- It is an association statement of the unit’s balance, fees, and pending assessments, and associations often charge a fee for it; negotiate in your offer who will pay.
How much should a condo have in reserves?
- There is no universal number, so rely on the most recent reserve study and compare the recommended level to the actual balance to judge assessment risk.
How do I find out if the association has litigation?
- Review board minutes and ask for litigation disclosures, then have your attorney assess insurance coverage, stage of the case, and possible financial impact.
Can a condo board limit my ability to rent my unit?
- Many associations have reasonable rental caps or minimum lease terms set in bylaws or rules, so review those carefully and have your attorney explain how approvals work.
How do these documents affect my mortgage approval?
- Lenders review the budget, reserve funding, owner-occupancy levels, and any single-owner concentration or litigation; projects that do not meet guidelines can limit your loan options.
What if I find a problem in the documents?
- You can negotiate credits, request that the seller or association address the issue before closing, add protective contingencies, or walk away if the risk is too high.
