Buying a Condo in Massachusetts: Which Documents Should You Review?
Before you commit to a condo, read the master deed, bylaws and rules, the budget, the reserves, the insurance and the meeting minutes. What each tells you, plus the 6(d) certificate every sale needs.
When you buy a condo you're buying into an association, so read its paperwork as carefully as you inspect the unit. Ask for the master deed, bylaws and rules, the current budget, the reserve balance (and any reserve study), the master insurance policy, recent meeting minutes, and any planned or pending special assessments. In Massachusetts, every sale also needs a 6(d) certificate from the association confirming the seller's fees are paid.
What does each document tell you?
- Master deed and bylaws: what you own versus common areas, and how decisions are made.
- Rules and regulations: pets, rentals, renovations, parking, short-term rentals. Deal-breakers often hide here.
- Budget: where your monthly fee goes, and whether it's realistic.
- Reserves: money saved for roofs, siding, paving and other big projects. Thin reserves often mean special assessments.
- Master insurance: what the association covers, the deductible, and what your own HO-6 policy needs to cover.
- Meeting minutes: the most honest document. Look for leaks, disputes, lawsuits, deferred repairs and talk of assessments.
What's a 6(d) certificate?
Named for Section 6(d) of the Massachusetts condominium law, it's a statement from the association that the unit's common charges are paid up to date. The closing attorney needs it. Sellers request it from the management company or trustees, and there's usually a fee.
What red flags should make you pause?
- Special assessments planned or being discussed
- Low reserves with an older building
- Pending litigation involving the association
- A high share of units rented, or a single owner holding many units (this can affect financing)
- Big insurance deductibles that would land on owners
Some of these can make a condo hard to finance. See non-warrantable condos.
Questions people actually ask.
When should I get the condo documents?
Before or right after your offer is accepted, and before the inspection deadline or purchase and sale agreement, so you have time to review.
Is a small association riskier?
Not necessarily, but two- and three-unit associations often have informal finances and little in reserves. Ask how they handle big repairs.
Do I need condo insurance if the building has a master policy?
Yes. An HO-6 policy covers your interior, belongings, liability and often the master policy deductible.
This article is general information about Massachusetts real estate, not legal, tax, or financial advice. Every property and transaction is different. For advice on your situation, talk with me and, where appropriate, an attorney, lender, or tax professional.