Buying a Condo Directly from a Developer

When a condominium unit is sold by a developer (not a resale), buyers get extra protections and disclosures. In addition to the seven standard condominium documents, developers must provide two additional documents to prospective buyers.Prospectus (Offering Circular). If the condominium has more than 20 residential units, the developer must give buyers a prospectus. Think of this as the condo’s “big picture” guide. It highlights and summarizes key information from the condominium documents so buyers can quickly understand how the condo is structured and operated.Estimated Operating Budget. This document breaks down the expected shared expenses of the condominium, such as maintenance, management, insurance, and other common costs. It helps buyers understand what they’ll likely be paying in association fees and where that money goes.