
WASHINGTON DC CONDOS
Who knew there was soooo much to know about purchasing DC condos, and reviewing DC condo documents? Well don't worry, we've compiled a page of resources and 'need to know' information you can use when the time comes. Reach out when you have a question, or you're ready to get started!
ABOUT WASHINGTON DC CONDOS
- A condominium isn’t a certain type of building or architecture. It can take many different shapes and forms. Primarily, it’s ownership of an individual share in an owner’s association. The definition of a condo “unit” is defined in the governing documents. It can be anything from a commercial or industrial building to a boat dock;
- You’ll have a deed to the unit, which you will own, and an interest in the common elements.;
- You’ll pay association dues and abide by the rules and restrictions set forth in the CC&Rs.;
- A standard mortgage loan can be used to purchase a condominium;
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Most buyers are familiar with condominiums in Washington DC, but not necessarily with the process of reviewing DC condo documents.It’s important to review your DC condo documents carefully to ensure that the financial state of the association is good, and that you can live with the condo association rules and regulations. Your real estate agent can’t review them for you. Real estate agents are not lawyers or CPAs. It’s up to you to read and understand the association documents, and to ask questions of the appropriate experts when you don’t. If you have questions about DC condo documents, the budget and/or reserves, seek answers from the association and the advice of a real estate attorney or CPA.
For a quicker review, review this synopsis: Synopsis of 2014 DC Condo act Amendment WP Also, in 2014, the DC Condo Act was amended. Amendment to the DC Condo Act
RIGHT OF RESCISSION
It’s the law. The DC Condo Act (reference your purchase agreement) essentially gives buyers the right to review association documents and/or resale certifications for a specified number of days from date of receipt and withdraw from a Washington DC condo or co-op transaction should they not agree with the rules and regulations. In Washington DC:
- New condos are afforded a 15 day right of rescission from the date of receipt of the public offering statement package.
- Resale condos are afforded 3 business days beginning the day following the date of receipt of the resale package.
- Although developers aren’t required to provide a right of rescission for association documents on fee simple products such as single family attached or detached homes, they may opt to do so. Be sure to ask before signing a contract. If there is no rescission clause, try to negotiate one.
- Resale buyers are protected on fee simple purchases by the HOA disclosure in the GCAAR real estate contract. It requires sellers to provide buyers with HOA documents by the 10th day following ratification. The buyer has 3 business days for right of rescission.

WHAT YOUR WASHINGTON DC CONDO DOCUMENT PACKAGE SHOULD INCLUDE
The shortlist, in layman's terms:
- Current budget and financial condition, reserve funds
- Current Bylaws, architectural guidelines and CC&Rs (Covenants, Conditions and Restrictions) that define the rules and regulations for unit owners and co-op shareholders
- Association Fee Breakdown
- Insurance coverage requirements for unit owners and Master Insurance Policy coverage
- Occupation limitations (number of people who may occupy a unit)
- Statement of unpaid fee assessments, special assessments, and/or upcoming assessments
- Records of any pending legal action or judgements by or against the association
- Certification of filing for the association’s annual report to state board (some associations exempt)
- Records of approved alterations to the unit
- Violation notices to current unit owner(s)

THE LONG LONG LONG LIST
TLDR
Smaller associations and self-managed associations may not offer the same packages as larger, professionally managed associations.

WARRANTY ON NEW DC CONDOMINIUMS
If you're purchasing a new condominium in DC, be aware that the typical structural warranty runs only 2 years from the date of the first sale. Read our article on DC Condo Associations, structural warranties and remedies for defects.

RULES OF THUMB
Compliance
Is the current unit owner in compliance with the rules of the association, has he/she any outstanding fines, condo dues or special assessment payments? If so, make sure you stipulate that these be brought current at the seller’s expense and shown as such on your HUD-1 (settlement statement), or you could become liable for them. Ask if any improvements or alterations have been made to the unit and, if so, if they are in compliance with board/association regulations and standards. You want to make sure they’re not in violation, or you could inherit any liability/penalties.

Important Questions
It is important to ask the association or management representative (in writing, and get a written response) if the association is involved in any planned, pending or unresolved litigation. This can affect the ability of mortgage lenders to lend against the property. It is also important to ask about the association’s investor ratio (ratio of renters vs owners), the square footage percentage of commercial property associated with the association (retail components) and percentage of delinquent dues by owners (as well as the length of time they are delinquent). All are subject to percentage caps that can render a building unwarrantable (unlendable). You’ll also want to verify that the current owner is up-todate on dues and learn the percentage of owners delinquent on dues. Ask about planned or levied special assessments as well as major improvements being discussed for the next one to three years. Ask if any improvements or alterations have been made to the unit and if they are in compliance with board/association regulations and standards, obtained the proper permitting if required and were inspected, if required. You will inherit violations and associated fines/penalties if not. Other questions include restrictions for pets, rentals and smoking, as well as the rental cap, if any, and waiting list length. Check to see what the policies and fees are for move-ins and ask about the amount of capital contribution, if any.
Special Assessments
This disclosure should be included in your purchase agreement provisions and your agent likely checked the box that says the seller will be responsible, but make sure. Your lender will request a Condo Questionnaire that should pose this question, also. Ask your lender for a copy. Surprisingly, condo owners are not always aware that there are special assessments pending, so even if they answered ‘no’ to the question on your purchase agreement, it’s important to read the resale certificate package and the condo questionnaire. These are “official” responses. Liens and Judgements During the contract process your agent should have specifically asked about liens and judgements. At any given time, there are a number of developer marketed properties with mechanics liens against them, and privately-owned properties can have these, too. If there are liens against the association and unit, it could make it difficult or impossible to get financing and the payoff of liens and judgements can result in higher condo fees and special assessments. Be sure to get all documentation if there are liens, and take it to your selected title company and lender for review.
Budget
Examine expenditures in the budget, and volume of reserves. New condos often haven’t built up large reserves just from capital contributions, developers often are supressing the condo dues while they’re selling, as well as keeping the budget lean until the homeowners take over the association. There are many reasons for this, but the bottom line is that it’s important to realize that expenses and condo dues are likely to increase-sometimes significantly-when the unit owners take control of the association. This typically occurs when the project is 70% to 75% sold. Check to see if the condo dues have increased, how often, and by how much. Is there an annual cap on raises? In older communities the reserves may have been depleted by costly repairs, unpaid dues, and community expense increases as amenities age and staff and services become more expensive over time. When reserves are low and major repairs are needed, the unit owners are typically assessed for the costs in shares based on the unit size. Does the association have sufficient reserves for repairs? Especially in older condo buildings, this is important. Lawsuits or judgments pending against or involving the condo association can also be a source of condo fee increases and special assessments. Ask for copies of association meeting minutes for the past 6 meetings. Review them for discussions of expenditures, repairs, legal proceedings and other issues that might shed light on the association’s future spending and assessment plans.

VIRGINIA CONDO RESCISSION PERIOD
The Virginia Condo Act (reference your purchase agreement) essentially gives buyers the right to review public offering statements, association documents and/or resale certifications for a specified number of days from date of receipt and withdraw from the transaction within that time should they not agree with the rules and regulations or approve of the associations budgetary or finacial data. Right of Rescission in Virginia (these rules can be updated from time to time, so be sure to check for new rules and revisions to old ones):
- New Condos: 10 days from day of receipt Under Virginia Law a purchaser of a condominium unit is afforded a ten day period during which he or she may cancel the contract of sale and obtain a full refund of any sums deposited in connection with the contract. The ten day period begins running on the contract date or the date of delivery of a Public Offering Statement, whichever is later. The purchaser should inspect the condominium unit and all common areas and obtain professional advice. If the purchaser elects to cancel, he or she must deliver notice of cancellation to the declarant by hand or by United States mail, return receipt requested;
- Resale condos: 3 calendar days from date of receipt of resale package.
- Virginia Condominium Act Section 55-79.97: The statute as amended states that a purchaser of a condominium unit may cancel a sales contract within 3 days of being notified that the resale certificate will not be available, and the amendments define when a resale certificate shall be deemed not to be available. Specifically, a resale certificate is not available when: (a) a current annual report has not been filed by the unit owners’ association with either the State Corporation Commission pursuant to § 13.1-936 or the Common Interest Community Board pursuant to § 55-79.93:1, (b) the seller has made a written request to the unit owners’ association that the resale certificate be provided and no resale certificate has been received within 14 days in accordance with subsection C of the statute, or (c) written notice has been provided by the unit owners’ association that a resale certificate is not available. Section 55-79.97(F) was also amended to make it clear that a resale certificate need not be provided if there is a disposition of the unit by a sale at an auction when a resale certificate was made available as part of the auction package for prospective purchasers prior to the auction.