For buyers
Buying a condo in Rhode Island
When you buy a condo you are buying into a legal association with its own budget, rules, insurance and obligations. The unit is the easy part — the association is what determines your monthly cost, your financing options and how you can live there.
Start with the community, not the listing
Before you tour a unit, look up the community profile: the association, the management company, the current monthly fee, what that fee includes, and whether there is a special assessment in progress.
- Current monthly fee and effective date
- What the fee includes and excludes (heat, hot water, water/sewer, master insurance, landscaping, snow, trash, reserves)
- Active, pending and recently completed special assessments
- Reserve funding level and whether a reserve study exists
Read the rules before you fall in love
Rules are recorded in the master deed, bylaws and rules & regulations. They are binding on you the moment you close.
- Pet restrictions — number, size, breed, and whether they apply to renters
- Rental restrictions, minimum lease terms and rental caps
- Short-term rental prohibitions
- Parking assignment, guest parking, and storage
- Age restrictions (55+ communities)
- Renovation and alteration approval requirements
Documents to request
In a Rhode Island condo purchase your attorney and lender will need association documents. Request them early — some management companies charge fees and take one to two weeks.
- Master deed / declaration and any amendments
- Bylaws and current rules & regulations
- Current operating budget
- Most recent financial statements and reserve balance
- Recent board meeting minutes (often 12 months)
- Certificate of insurance (master policy)
- Resale certificate / 6(d) certificate showing fees owed
Financing questions to answer early
Not every condo community is warrantable for every loan program. Confirm this before your inspection contingency expires.
- Owner-occupancy ratio and investor concentration
- Percentage of owners delinquent on fees
- Any pending litigation involving the association
- FHA or VA approval status if you need those programs
- Reserve funding percentage of the annual budget
- Whether commercial space exists in the building
Budget for more than the mortgage
Beyond principal, interest and taxes, plan for the monthly fee, an HO-6 unit owner policy, potential assessments, and one-time transfer or move-in fees charged at closing.