What to check before signing a contract is not just the condition of the property. The first thing to look at is the financial status of the condo association. Even if the building appears well-maintained, opening the association's financial records can tell a different story.

Lansdale is located in the northern part of Montgomery County, which is part of the North Penn School District, and is known for having relatively lower entry prices compared to nearby Blue Bell or Ambler. The median price for condos in Montgomery County is $285,000, and the median monthly fee is around $275. This information comes from Montgomery County real estate data. Since there can be significant variations in fees by neighborhood within the same county, it's advisable to check the individual condo's fees during the listing phase.

When checking the financial health of the condo association, there are three main things to look at in order. First, the financial statements and budget for the last 2-3 years. If expenditures consistently exceed the budget, there is a high likelihood of fee increases or special assessments. Second, the results of the reserve study. Pennsylvania is one of the states that does not legally require reserve studies, but under the Uniform Condominium Act and the Uniform Planned Community Act, associations have a fiduciary duty to create long-term maintenance plans and manage reserve funds prudently. The lack of a legal requirement means that the level of preparedness can vary greatly from one association to another. Third, whether there are any pending or planned special assessments. The most reliable way to confirm this is to request the meeting minutes directly.

Additionally, the possibility of obtaining a loan should also be considered. Fannie Mae and Freddie Mac classify buildings as non-warrantable condos for reasons such as a delinquency rate exceeding 15%, excessive rental unit ratios, insufficient reserve funds, or pending lawsuits. Reports indicate that starting in 2026, the minimum reserve fund requirement will increase to 15%, and the streamlined review process will be eliminated. If the association's finances are poor, the buyer's loan options may be limited, regardless of the property's value.

If approaching from an investment rental perspective, Lansdale can be seen as an area with both residential demand from commuters to Philadelphia and rental demand. Due to the easy management of condos, the burden of rental operations is relatively low, but if the association's finances are shaky, special assessments can eat into rental income, which is something to be cautious about. For those relocating from out of state, property taxes and insurance rates may differ from those of their previous residence, so calculating these separately can help in making a stable home purchase plan.

To be more specific about what to check, look for any large-scale repair plans discussed in the association's meeting minutes over the past 2-3 years, whether those plans can be covered by the reserve fund, or if they might lead to special assessments. The recent trend of rising reinsurance costs and litigation risks has also affected condo insurance premiums nationwide, impacting the association's budget. If the master insurance premium rises, the association will have to choose between raising fees or reducing reserve contributions, and it's worth noting that many associations tend to choose the latter. A reduction in reserve contributions increases the likelihood of future special assessments.

Considering the possibility of obtaining a loan clarifies the order of checks even further. If the association's finances are poor and do not meet the reserve fund criteria, the entire building may be classified as a non-warrantable condo, and buyers may find their options limited to loans requiring a down payment of over 20%. From the initial stages of narrowing down properties, requesting financial documents from the association can help avoid surprises regarding loan issues right before closing.

In summary, when looking at condos in Lansdale, it seems advantageous to first examine the financial status of the condo association rather than the property itself. If you are considering school districts, please verify the assigned schools by address before purchasing. This article is not investment or legal advice, and it is recommended to consult with a professional before finalizing any contracts.