Questions to Ask When Buying a Townhouse
Buying a townhouse means buying into a shared structure and a shared budget, so the questions that matter are about where your ownership stops, what the association has and has not saved for, and what you are allowed to change. These twenty are for the seller, the listing agent and the association or its manager.
The questions
Open any question for the note
Do I own the land and the structure here, or is this a condominium interest in a shared building?
Why ask it
Townhouse describes a shape, not a form of ownership, and the same street can contain both. The answer changes who insures the roof, how your lender underwrites the loan, and what you are responsible for repairing.
Where exactly does my property end? Roof, siding, party wall, patio, front lawn.
Why ask it
Get this as a list rather than a general answer, because the boundary is rarely intuitive. Owners routinely discover after a leak that the roof above their unit is theirs alone, or that the association owns the patio they landscaped.
What is the monthly fee, and what has it done over the past five years?
Why ask it
The trend matters more than the number. A fee that has not moved in five years usually means the association is underfunding reserves, which arrives later as an assessment rather than never arriving at all.
What does the fee cover, and what will I still be paying separately?
Why ask it
Ask specifically about water, sewer, trash, exterior insurance, landscaping, snow clearance and the roof. Two associations with identical fees can leave you with very different bills once you list what each one excludes.
Can I see the last two years of association financial statements and the current reserve balance?
Why ask it
The reserve balance is the single best predictor of whether you will face an assessment. A community with a large roof replacement coming and modest reserves has a cost that will be shared out among owners, including you.
Is there a recent reserve study, and how well funded is the association against it?
Why ask it
A reserve study lists the major components, their remaining life and the cost to replace them. Comparing it with actual savings tells you what is coming, and an association with no study has not looked.
What special assessments have been levied in the past ten years, and is anything being discussed now?
Why ask it
History is the best guide to future behaviour, and repeated assessments indicate chronic underfunding. Ask the board directly about anything under discussion, since it may be in minutes that have not reached the listing.
How many owners are behind on their dues?
Why ask it
Delinquency drains the operating budget and can affect mortgage eligibility for future buyers, which affects your resale. Ask for the actual number of units in arrears rather than a reassurance that collections are fine.
What proportion of the units are owner-occupied rather than rented?
Why ask it
A high rental share can restrict which loans buyers can get, which narrows your future market. It also tends to change how much attention the community's shared spaces get.
Is the association involved in any litigation, or does it have any open insurance claims?
Why ask it
Active litigation, especially over construction defects, can make a unit difficult to finance and hard to sell. Sellers may not know, so ask the manager or the board rather than only the agent.
What does the master insurance policy cover, and where does my own policy have to begin?
Why ask it
Some policies cover the structure to bare studs and others include original fixtures, which decides what your own policy must insure. Also ask the deductible on the master policy, because it can be passed to the unit owner who caused a claim.
When were the roof, siding, windows and pavement last replaced?
Why ask it
These are the big shared costs, and their remaining life tells you where the next assessment will come from. If several are near the end of their life at once, that is a budgeting problem regardless of the current fee.
What do the rules actually say about changes: paint, windows, doors, planting, a fence, solar panels, a heat pump?
Why ask it
Get the written architectural rules, not a summary. Restrictions on window replacement and outdoor equipment are the ones that most often collide with plans buyers have already made.
What are the parking rules for residents and for visitors?
Why ask it
Assigned spaces, garage restrictions, street limits and guest permits vary widely and cause a large share of neighbour disputes. Ask what happens when you have people over, since some communities have very little visitor parking.
Can I rent it out, and are there caps or waiting periods?
Why ask it
Many associations limit the number of rented units or require a period of owner occupancy first. If flexibility matters to you, this needs to come from the governing documents rather than from a verbal assurance.
What are the pet rules, including size, number and breed?
Why ask it
Pet restrictions are common, enforced unevenly, and awkward to discover after moving in. Check the recorded rules, since what the neighbours currently do is not evidence that it is permitted.
Who do I call at eleven at night when a pipe bursts, and who pays if the water came from next door?
Why ask it
Shared walls mean shared water damage, and responsibility depends on the documents and the insurance rather than on where the leak started. Knowing the process in advance saves an argument during a flood.
How much can I hear through the party wall?
Why ask it
Ask the seller plainly, then test it: stand in the room adjoining the neighbour at an evening hour. Sound transmission is the most common regret in attached housing and the one thing you cannot change afterwards.
Is the community self-managed or run by a management company, and who is on the board?
Why ask it
Self-managed associations are cheaper and depend entirely on a few volunteers, so records and enforcement can be uneven. Ask how long board seats have gone unfilled, since apathy shows up later as deferred maintenance.
What is the most contentious issue in this community right now?
Why ask it
Every association has one: a proposed fee rise, a repair vote, a dispute over parking or short-term lets. Whoever answers honestly is also telling you how the community handles disagreement, which you will be joining.
Buying Into a Shared Building and Budget
Practical guidance for the conversation itself
The Documents to Read
Twelve months of board meeting minutes
Minutes are where you find the leaks, the disputes, the deferred repairs and the assessment nobody has voted on yet. Buyers almost never read them and they are more revealing than the financial statements.
The governing documents and rules
Declarations, bylaws and any separate rules set out what you may change, rent, park and keep. Read the enforcement and fine provisions too, since they tell you how the community actually operates.
The budget, the reserve study and the current balance
Compare what the reserve study says should be saved with what is actually there. The gap, divided by the number of units, is a reasonable estimate of the assessment risk you are taking on.
The resale or estoppel certificate
This states the fees, arrears, pending assessments and any violations attached to the unit. Order it early, because the period for reviewing it is often short and it can arrive after you have removed contingencies.
What to Check Yourself
- Visit in the evening and again at a weekend. Parking, noise and how many people are around change completely by hour.
- Stand in the rooms that adjoin the neighbour and listen. Ask the seller to be there so the house is not artificially quiet.
- Walk the whole community, not just this unit. Cracked pavement, patched roofs and tired landscaping are what deferred maintenance looks like.
- Look at the attic or roof space if accessible, and ask whether the firewall between units is intact.
- Knock on a neighbour's door and ask what they would change about living here. It is the cheapest due diligence available.
- Check where the water shut-off, meter and any shared utilities are, since in attached housing they are sometimes in a neighbour's space.
Common Mistakes
Budgeting for the fee but not the assessment
The monthly fee is the visible cost, and the special assessment is the one that arrives as a single large bill. A community with thin reserves is not cheaper, it is deferring, and the deferral is now partly yours.
Skipping the inspection because the exterior is shared
Your unit still has its own plumbing, wiring, windows and heating system, and an inspector can also flag shared components in poor condition. Attached housing does not remove the reason for an inspection.
Assuming the rules will not be enforced
Enforcement varies with who is on the board, and boards change. Anything you need to do that is not permitted in writing should be treated as not permitted.
Not checking how the loan is affected
Rental ratios, delinquency levels, litigation and insufficient insurance can all limit which mortgages are available on a unit. Ask your lender to review the association early, since it constrains both your purchase and your eventual sale.
Before Closing
- 1Get written confirmation of the current fee, any arrears on the unit, and any assessment already approved.
- 2Have your insurance agent read the master policy and quote your own cover against what it excludes.
- 3Ask the manager in writing whether any assessment or major project is under discussion, and keep the reply.
- 4Confirm in the documents which components you must maintain, and price the near-term ones such as windows or a water heater.
- 5Check whether anything the seller altered was approved by the association, since unapproved changes can transfer to you as a violation.