Buyer guide
Condos offer "lock and leave" living: the association handles the outside, there are often amenities, and many are a short walk from downtown. But owning a condo works differently from owning a house, from what you actually own to how you insure and finance it.
Before you start
Buying a condo is very different from buying a single-family home: the association's documents, budget, reserves, insurance and lender approval can matter as much as the unit itself. Don't trust just any agent. Work with one who's educated on condos and sells a lot of them, and who knows which questions to ask before you're under contract.
Stephen has lived in a condo, served as condo board president, and has helped many clients buy and sell condos.
Talk to Stephen →The basics
A condo is a type of ownership, not a type of building. Townhomes, midrise and high-rise buildings, and mixed-use developments can all be condos.
You own your unit, plus a percentage share of everything else, called the common elements: the building exterior, roof, hallways, grounds, parking areas and amenities.
Your unit is defined in three dimensions in the recorded Declaration of Condominium, plat and floor plans. For example, your walls might end at the inside surface of the drywall, and your floor at the middle of the concrete slab. Since the developer sets these lines, read them.
Some common areas are assigned for your use only, like a parking space, storage unit or balcony. They can't be taken away without your written consent, and they transfer with your unit when you sell.
A condo's documents include a "Declaration of Condominium," and the association's name includes "condominium association" or "unit owners' association." Single-family neighborhoods are usually HOAs. Buying in an HOA →
Who runs it
The association maintains the common elements, insures the property and enforces the rules. Each owner gets a vote, though owners behind on dues usually lose it.
A board of directors makes most decisions, often with a professional property manager. Big changes, like amending the Declaration, need a two-thirds vote of owners under Georgia's Condominium Act (O.C.G.A. § 44-3-93).
In a new building, the developer controls the board until enough units sell or a set number of years pass. Then owners elect their own board.
Condos usually restrict renting more than HOAs do. If you might lease the unit later, check the rental rules before you buy. Renting out your home →
What you'll pay
The association must insure the condominium, and lenders usually just need a copy of that policy.
You'll still want an HO-6 policy for your belongings, upgrades and improvements to your unit, and personal liability. Ask your insurance agent what your association's policy does and doesn't cover.
Insurance agents we trust →Financing
With a house, the lender approves you and the property. With a condo, the lender also approves the whole community. Just like your income and credit get reviewed, the condo association's finances, insurance and building get reviewed through a condo questionnaire filled out by the association or its manager. A great buyer can still be turned down because of the building.
A warrantable condo meets Fannie Mae and Freddie Mac guidelines, so you can use a regular conventional loan.
A non-warrantable condo fails at least one of them, and that usually applies to every unit in the building. You'll need a specialty or portfolio loan, often with a larger down payment and a higher rate, or you'll pay cash. It can also shrink the pool of buyers when you sell.
Ask early whether a building is warrantable. We'll help you find out before you're under contract.
FHA & VA loans
With an FHA loan on a house, the home itself has to meet FHA's standards. With an FHA loan on a condo, the entire condo community must be FHA-approved too. That's a separate approval the association applies for, not something you can do as a buyer.
Talk to a lender with condo experience early, before you fall in love with a unit, so you know which buildings they can finance.
Lenders we trust →New & converted condos
Georgia gives the first buyer of a new condo unit 7 days to cancel without penalty after receiving the developer's disclosure package (O.C.G.A. § 44-3-111): the legal documents, budget and floor plan. Resale buyers don't get this right.
Developers often need to presell units before building. Your contract may depend on enough units selling by a deadline. Your earnest money should be held in escrow, and larger deposits are now common. You may get a lower price and some say in the layout, but you take on the project's risk.
Some condos are former apartments or older buildings. They can offer character and a lower price, and the first buyer gets extra disclosures, including a report on the condition of the building's major systems.
Do your homework
We'll email you the Georgia REALTORS® brochure What to Consider When Buying a Home in a Condominium, free.
Buyers usually can't get association records directly, so we'll ask the seller to request them for you during due diligence. Many recorded condo and community declarations are on our subdivision covenants page.
Looking at condos?
Stephen has lived in a condo, served on the condo board, including as board president, and has helped many clients buy and sell condos. Two condos can look alike and come with very different dues, rules and reserves. We'll help you compare them before you're under contract.
Good to know: this is a general overview, not legal advice. Every condominium's documents are different; read them and consult the professionals of your choice.
We're real estate agents, not attorneys. Nothing on this page is legal advice. Laws change and every situation is different, so always consult an attorney about your specific situation. Attorneys you can contact: Weissman PC · Blasingame, Burch, Garrard & Ashley, P.C.