Q–My wife and I recently sold our house. We’re now renting a luxury apartment, but hate it because it doesn’t have a balcony or any space to garden. We found a townhouse condo complex where we are considering a purchase, but we’ve heard that buying a condo is much different from buying a house. What pitfalls should we avoid?
A–The main similarities between buying a house and a condominium are: (1) You own title to your condo residence (actually to the airspace between the condo walls); and (2) you can get an individual mortgage on your condo, just as you probably had on your house.
But condo buyers should ask lots of special questions. For example, be sure to inquire about poor soundproofing, the number one complaint of condo owners. Also ask your prospective condo neighbors what they like least and most about their condo and the complex. Check the percentage of renters; if it is above 25 percent, many mortgage lenders refuse to loan there, thus hurting market value.
Also ask if there are adequate maintenance reserves, professional condo management or any planned special assessments or monthly fee increases. Ask about the financial condition of the condo association and the bylaws and regulations.
Be especially wary of buying in a new condo complex. Often the units are overpriced. Don’t close your purchase unless at least 60 percent of the new condos are sold.
Q–In April, my husband began a new out-of-town job. I was left to sell the house and keep the kids in school until the end of the school year. We now have a buyer and the sale should close Aug. 15. Is there anything we can do to avoid having my husband have to fly back here to sign papers at the closing?
A–Yes. He can sign a power of attorney form giving you authority to sign the closing papers on his behalf, as his attorney-in-fact. The title insurer usually has an acceptable form available. This form is important because your husband’s power of attorney must be recorded before the deed is recorded.
When you send the power of attorney form to your husband, be sure he signs it in front of a notary public, who will acknowledge his signature so the document is recordable. If your husband is outside the country, he must have his signature notarized at a U.S. embassy or U.S. consulate office; if he doesn’t, it won’t be eligible for recording in the U.S.
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Have a question about real estate? You can write to Robert Bruss in care of Tribune Real Estate Features Service, 435 N. Michigan Ave., Suite 1400, Chicago, Ill. 60611. Answers will be provided only through the column. Please note that laws vary from state to state and area to area. Consult an attorney for specific legal advice.
