Condominium buyer education
Before You Buy a Condo in Massachusetts or New Hampshire
The unit is only part of the purchase. Learn what to examine in the association, reserves, insurance and governing documents.
The short answer
When buyers walk into a condominium, they naturally focus on the unit. But buying a condo also means buying into an association responsible for finances, insurance, maintenance and long-term repairs.
A beautifully updated unit can still be a risky purchase if the association has insufficient reserves, unresolved building problems, inadequate insurance or significant expenses approaching.
Local perspective
Start with the association—not just the unit
- What the association and each owner must maintain
- Condominium fees, annual reserve contributions and the current reserve balance
- Upcoming repairs, pending or approved special assessments and litigation
- Whether master insurance and the project satisfy the buyer’s financing requirements
Local perspective
Understand what reserves can—and cannot—tell you
Reserve funds are set aside for major future work such as roofs, siding, roads, decks, drainage, elevators and structural components. The bank balance alone is not enough; compare expected work, timing and cost with the annual funding plan.
A professionally prepared reserve study can reveal the condition, remaining useful life and projected replacement cost of common components.
- What major components will need work?
- When is that work expected?
- Is the association saving enough?
- Has an independent reserve study been completed?
Local perspective
The 2027 lending-reserve change
The widely discussed 15% standard is primarily an upcoming mortgage-financing requirement—not a Massachusetts or New Hampshire law requiring every association to hold a particular bank balance.
Fannie Mae announced new project-reserve standards for loan applications dated on or after January 4, 2027. The March 18, 2026 Lender Letter LL-2026-03 specifies a 15% allocation for the Full Review process. Read the linked 2027 reserve guide below for the source, calculation and reserve-study considerations, and have your lender confirm the requirements for your application.
The percentage refers to annual budgeted contributions to reserves, not 15% of the building’s value or all anticipated repairs. Even an association meeting a percentage requirement can be underfunded for the work ahead.
Local perspective
Special assessments and low fees deserve context
Determine why an assessment was imposed, how much applies to the unit, whether the seller paid it, whether installments remain and whether more assessments are under discussion.
Low fees may reflect efficient management—or postponed maintenance and weak reserve contributions. Higher fees may include insurance, water, snow removal, landscaping or exterior maintenance that a single-family owner pays separately.
Local perspective
Responsibility and insurance must be read carefully
Do not assume the association pays for a roof, window or deck simply because it is outside the living area. The declaration or master deed, bylaws and amendments must be read together.
Ask an insurance professional and lender to evaluate the master policy, deductibles, replacement-cost provisions, flood or water exposure, the individual HO-6 policy and loss-assessment coverage.
Local perspective
Documents buyers should request
- Recorded declaration or master deed, trust or bylaws, amendments and rules
- Current budget, balance sheet, financial statements, reserve balance and reserve study
- At least 12 to 24 months of meeting minutes and assessment notices
- Master insurance information, litigation and claim disclosures
- Lender condominium questionnaire, rental restrictions and responsibility charts
Local perspective
Warning signs that merit more investigation
- Declining or unusually low reserves
- Large projects without a clear funding plan
- Repeated assessments, operating deficits or association borrowing
- Deferred structural or safety repairs
- Material insurance exclusions, litigation or owner delinquencies
- A lender unable to approve the condominium project