Condominium Documents in Massachusetts

Creating new condominiums remains an extremely popular real estate development tool in and around Boston. The process, governed by statute in Massachusetts (known as the condominium statute – G.L. Ch. 183A) is a fairly straightforward one, and it is the developers’ duty to make sure the appropriate mechanics are in place before listing the individual units on the open market. However, once the necessary documents have been created and filed with the Registry of Deeds, certain details of compliance are often overlooked at the transaction stage, when buyer and seller come together for the purchase and sale of the individual units.

The various filings, knows as “Condominium Documents,” consist of a Master Deed for the entire condominium, a Declaration of Trust, floor plans, and eventually a budget detailing the operational expenses of the condominium as a whole. The Condominium Documents detail the framework of the procedures of the condominium and the association that is elected to run the day to day and year to year operations. This typically consists of rules and regulations, insurance requirements, voting procedures and requirements, trustee positions and duties, and By-laws that provide for the framework of many other aspects of condominium life. It is important for the educated buyer, and his/her attorney, to have reviewed the Condominium Documents before closing on a condominium unit.

Problems are most likely to arise in smaller condominiums with 5 or fewer units. In smaller condominiums, the day to day operation of the condominium, including setting the budget, collecting the fees, making sure the premises are insured and making sure the common areas are maintained are the responsibility of several of the unit owners, who often act as Trustees. If the developer and subsequent owners of the units do not follow the requirements of the condominium documents, corrective steps must be taken to make sure that the condominium is being run according to its’ own rules and the requirements of the condominium statute. Making these corrections may cause a delay of a potential purchase and sale, and such delays may lead to increased costs, the potential for mortgage rate expiration, and eventually the possible loss of one’s deposit or prevention of sale. Such issues include failing to maintain a sufficient budget, failing to appoint the appropriate number of Trustees, failure to record written votes and actions and other minor but important details. These oversights and delays can be prevented with the careful creation and review of Condominium Documents.

These issues typically arise when an experienced realtor and/or attorney are not involved during the negotiation of the Purchase and Sale Agreement all the way through closing. It is imperative to have these documents reviewed and explained to ensure the required procedural mechanics are followed, and that necessary document correction or amendment is handled in a timely and proper fashion.

Contact a Massachusetts Real Estate Attorney

For more guidance on choosing a mortgage product in Massachusetts, or if you are looking for a real estate attorney in Boston, please contact us. If you prefer, you can also telephone our offices in Boston seven days a week at toll free 866-414-0400.

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