Buying a condo or townhome? One of the key due diligence line items is to determine if the property is warantable vs a nonwarantable property when if comes to securing a loan.

Typically, a condo is considered warrantable if:

No single entity owns more than 10% of the units in a project, including the developer
At least 51% of the units are owner-occupied
Fewer than 15% of the units are in arrears with their association dues
The homeowners association (HOA) is not named in any lawsuits
Commercial space accounts for 25 percent or less of the total building square footage

Common non-warrantable properties also include condotels, time shares, fractional ownership properties, and other projects which require owners to join an organization, even a golf club.

Link to more details for insight on the implications of a Warantable vs Nonwarantable property.
Cliff Daniels
Realtor
Active Properties
Boulder Colorado
720 434 1418
cliff@actprop.com