Buying a condo in Massachusetts?

Understand the full cost

Compare the mortgage, property taxes, unit insurance, condo fee, utilities, and maintenance you pay yourself. Ask about extra parking or amenity charges, move fees, and any contribution due at purchase.

The condo fee may cover some shared costs, but each association is different. A low fee can mean fewer services or less money saved for future work. Ask for the current budget and what has changed since last year.

Reserves are the association's savings for major work

Massachusetts law calls for an adequate replacement reserve fund kept separately from operating funds. Section 10(m) allows qualifying annual owner votes to modify that requirement. The law does not specify one reserve percentage for every condominium. Ask whether a modification was voted and documented. [1]

A reserve study estimates future repair and replacement costs. Read it alongside the actual reserve balance, yearly contributions, and planned projects. A balance alone does not tell you whether the roof, paving, or other major work is funded.

Ask about special assessments before you offer

Request details of assessments already approved, discussed, or being collected, and ask about association loans. What is the project, the cost for this unit, and the payment schedule? Have the contract specify who pays which amounts. Do not assume the seller's payment of today's bill covers work assessed later.

Get the documents early

Ask the seller or manager for the recorded master deed, trust or bylaws, amendments, rules, budget, recent financial reports, reserve information, meeting minutes, insurance, and information about projects, assessments, and litigation.

Massachusetts Section 10 gives records-access rights to owners and certain mortgagees. Arrange the seller's cooperation and a document-review deadline in your contract with your attorney; do not assume every prospective buyer has the same direct statutory access. [1]

Have your attorney review ownership boundaries, restrictions, approval requirements, and any right of first refusal. Verify pet rules, rentals, parking, storage, and renovations against the documents and applicable law.

What is a 6(d) certificate?

The Section 6(d) statement addresses unpaid common expenses and other assessed sums for the unit. It plays a role in clearing association liens when properly recorded. It does not certify that reserves are sufficient or that no future assessment will occur. [2]

Review insurance and condition separately

Ask your insurance professional to compare the association's master policy with your unit-owner policy, often called HO-6. Discuss interior coverage, improvements, deductibles, liability, loss assessment coverage, exclusions, and any flood exposure.

Arrange a licensed inspection and ask what common areas and systems can be inspected. A unit inspection cannot replace financial records, a reserve study, or an engineering report. If the association has reports about structural concerns or major systems, request them.

What changed for condo financing?

For applicable applications from August 3, 2026, Fannie Mae retired Limited Review and tightened reserve-study alternatives. For Full Review applications dated January 4, 2027 onward, its minimum yearly reserve allocation rises from 10% to 15% of annual budgeted assessment income. Qualifying alternatives and review waivers exist. These are mortgage eligibility rules, separate from Massachusetts law. [3]

The percentage concerns annual contributions toward reserves, not a required cash balance of 15%. Ask your lender which review applies and start the project check early. Preapproval for you does not automatically approve the association. [4]