Buyer’s Realtors
When you have an interested buyer for what you think is a lot, block and plan, half-duplex, that’s when you likely get your title search.
Uh oh, it has a unit number and a plan number... What the heck? It’s a condo! Time to start the extra diligence/investigation that every small condo demands.
Ask for condominium documentation. Ask if a reserve fund study is being done. Ask for a copy of the existing insurance policy. Is it actually condo insurance, which is 100% required, or is it conventional lot, block and plan insurance? Talk to the buyer’s lawyer right away. These things take time to sort out.
Seller’s Realtors
It’s somewhat the same for you. If you are taking a listing, you undoubtedly got a copy of the title. You thought it was a lot, block and plan half-duplex, but looking at the title: it’s a condo!
Ask your seller for a copy of their insurance policy. Has the seller been running it as an apartment or as a condo? You could consider amending the listing contract and any purchase contract to say that the seller won’t provide any condominium information or documents. However, this is a difficult position to take, and it could really put off buyers.
Your best bet is to recognize the situation, ask the questions, and then, as quickly as you can, give a heads up to the seller’s lawyer so they can sort out the issues and connect with the buyer’s lawyer.
Cheers,
Barry
