What is different about selling a condo
When you sell a condo you sell your unit plus a share of the common areas, and the buyer also joins the association. So the buyer’s lawyer and lender look at two things: your unit and the health of the whole building. A clean unit in a building with money problems can be harder to sell than the reverse.
Condos in Massachusetts are governed by MGL chapter 183A, the condominium law, and by the building’s own documents. The law sets the floor. The master deed, trust (or by-laws) and rules fill in the rest. Read them before you list. They can limit rentals, pets, or what you can do before closing.
Everything on this page is general information, not legal advice. A real estate attorney handles the closing in Massachusetts and can read your condo documents for you.
Condo documents buyers usually ask for
There is no single statewide checklist, but most buyer’s attorneys and lenders ask for the same set. Start collecting these as soon as you decide to sell.
- Master deed. The recorded document that creates the condo. Section 8 says what it must contain. It also sets each unit’s percentage share of common expenses and common areas under section 5.
- Condominium trust or by-laws, and rules. These cover rentals, pets, parking, storage and who decides what.
- Current budget and recent financial statements. Buyers and lenders want to see if the association is saving for repairs.
- Meeting minutes for the past year or two. They show planned projects and disputes.
- Master insurance certificate. The association insures the building. You insure your unit’s interior.
- The 6(d) certificate. Covered next, and in its own page: the 6(d) certificate in Massachusetts.
Association managers often charge for copies. The law only mentions a fee for the 6(d), and says it must be “reasonable”. Ask the manager what each item costs and how long it takes, then order early.
The 6(d) certificate
The 6(d) is a statement from the association of what you owe it. Under MGL c.183A s.6(d) it sets out the unpaid common expenses and other sums assessed against the unit. The statute requires the association to furnish it “within ten business days after receipt of a written request, upon payment of a reasonable fee.”
When it is recorded at the registry of deeds, the statement discharges the unit from any lien for other sums then unpaid. That is why buyer’s attorneys insist on it. Put your request in writing the day you list, not the week before closing. Full details are in our guide to the 6(d) certificate.
Condo fees and special assessments
Monthly condo fees are paid through closing and prorated, usually to the day. The amount you owe at closing shows up on your closing statement. See how to read the seller closing statement.
A special assessment is a one-time charge for a big repair, like a roof or siding. Whether the seller or the buyer pays one that has been voted but not yet billed is a matter of the purchase and sale agreement. It is a negotiating point, so tell your attorney about any assessment before you sign.
Unpaid fees follow the unit. Under MGL c.183A s.6(c) the association’s lien is ahead of most other liens, and for up to six months of budgeted common expenses it even ranks ahead of a first mortgage recorded before the fees went delinquent. Pay off back fees before closing and get the 6(d) to show it.
Financing: why the building matters to a buyer’s loan
Many buyers use a loan, and the lender reviews the condo project, not just the buyer. If the project does not pass, your buyer may not get the loan. That can happen even when your unit is in perfect shape.
Fannie Mae’s project standards make a project ineligible in cases such as pending litigation tied to safety, structure or habitability, unaddressed critical repairs (including unfunded repairs over $10,000 per unit needed within 12 months), and more than 35 percent commercial space. For FHA loans, the building generally must be on HUD’s approved list, or the unit can qualify for single-unit approval. HUD’s FHA condominium page says a single-unit approval project must be complete, have at least five units, and not be a manufactured home. HUD also reviews insurance, financial condition, title and pending legal action.
We could not confirm from the official pages we read the exact owner-occupancy and delinquency limits lenders apply today, so we do not quote them. In general, lenders look at how many units are owner-occupied, how many owners are behind on fees, and whether reserves are healthy. A building with many investor-owned units or many unpaid fees is harder for buyers to finance, and that can narrow your buyer pool to cash buyers. If you are curious how a cash offer compares, use the comparison tool.
Right of first refusal: rare in Massachusetts condos
Some states give condo associations a right of first refusal when a unit is sold. We did not find one in the sections of c.183A we read (sections 5, 6 and 8). A building’s own master deed or by-laws could still contain a restriction, so check yours. If one exists, your attorney must handle the notice before you sign a purchase and sale agreement.
Pricing a condo north of Boston
Price against recent sales in your own building first. Same-building sales already reflect the fees, the reserves and the building’s condition. After that, look at nearby buildings of similar age and size.
| Town | Typical condo value | Change over one year |
|---|---|---|
| Lynn | $362,077 | -0.9% |
| Everett | $421,557 | -0.1% |
| Malden | $449,299 | -0.6% |
| Revere | $466,368 | -0.6% |
| Medford | $621,569 | -1.4% |
Condo values in these towns were roughly flat to slightly down over the past year in this index. A higher monthly fee usually pulls the price you can ask down, because lenders count the fee against the buyer’s income. Our net proceeds calculator shows what you keep after the loan payoff, fees and closing costs.