By Adam Chubbuck, Team Leader, Team Alpha Charlie of Douglas Realty. Retired U.S. Navy Chief. Licensed in Maryland and Virginia.
Condos are one of the best entry points into this market. Lower price, no yard work, and in a lot of cases a location you could not afford in a single family home.
But buying a condo is not the same as buying a house, and the things that go wrong are different. Here is what to look at.
First: Condo or Townhome?
People use these interchangeably and they are not the same thing.
A townhome is usually fee simple. You own the structure and the land under it. There may be an HOA, but you own your roof and your walls.
A condo is a regime. You own the interior of your unit. The association owns the building, the roof, the exterior, and the common areas, and you own a share of all of it along with every other owner.
That difference matters enormously, because in a condo, a bad roof or a failing parking deck is partly your financial problem whether or not it touches your unit.
Some properties look like townhomes and are legally condos. Ask which one you are buying.
Read the Documents. Actually Read Them.
Maryland gives condo buyers a review period on the association documents with a right to cancel. This is one of the strongest protections you have and most buyers skim the cover page and file it.
Use it. Here is what to look for.
The reserve study
This is the single most important document in the stack.
Reserves fund the big replacements: roofs, siding, elevators, paving, pools, and in waterfront buildings, bulkheads and piers. Those things have finite lives and they will need replacing whether or not the money is there.
If reserves are underfunded, a special assessment is coming. Not maybe. The roof does not care about the budget.
Look for a current reserve study and how funded the association actually is against its projected needs.
Special assessments
Ask directly. Has one been levied recently, and is one under discussion?
Read the meeting minutes. That is where an assessment shows up months before it becomes official.
Litigation
Is the association suing anyone or being sued? Construction defect litigation is a particular red flag, and pending litigation can affect your ability to get financing.
Owner-occupancy percentage
This one surprises people.
The ratio of owner-occupied units to rentals affects loan eligibility. A building that is heavily rented can limit your financing options, and it will limit your buyer’s options when you go to sell.
Ask for the number.
Rental restrictions
If you might ever need to rent the unit, find this out before you write an offer.
Many associations cap the percentage of units that may be rented, impose minimum lease terms, or require a waiting period after purchase. Some prohibit rentals outright.
This matters a great deal in our corridor, where military and Department of Defense owners get orders and need to rent rather than sell. I have seen owners find out after closing that they could not, which turns a PCS into a forced sale.
Dues and what they cover
Compare what you get, not just what you pay.
A higher fee that covers water, exterior maintenance, and roofing may be cheaper than a lower one that covers a sign and a mailbox.
And ask about the trend. Have dues risen steadily? By how much?
The rules
Pets, parking, grills on the balcony, short-term rentals, what you can do to the interior, and whether you need approval for renovations. Easier to read now than to find out from a violation letter.
The Insurance Question
The association’s master policy covers the building. It does not cover your stuff or, usually, your interior finishes.
You need your own policy, commonly called an HO-6, and what it needs to cover depends on where the master policy’s responsibility ends and yours begins.
Get a copy of the master policy and have your insurance agent look at it. The gap between the two is where people get hurt after a water loss.
Ask specifically what the association’s deductible is, because in some buildings a large deductible gets passed through to owners.
Financing a Condo Is Different
Your lender is going to evaluate the building, not just you.
For conventional loans, the building generally needs to meet certain standards around reserves, owner-occupancy, delinquency rates, and litigation. A building that does not meet them is sometimes called non-warrantable, and financing options narrow considerably.
For FHA and VA loans, the project may need to be on an approved list, or qualify through a review process. Not every building does.
What to do: tell your lender early that you are looking at condos, and have them check the specific building before you get attached to a unit. Finding out in week three that the building will not qualify for your loan is an expensive way to learn this.
Baltimore City: Ask About Ground Rent
If you are buying in Baltimore City, ask whether the property is subject to ground rent.
It is a leasehold arrangement where someone else owns the land, typically $50 to $150 a year. It is usually a small financial item, but it shows up in title work and needs to be handled before closing. Check the Maryland Department of Assessments and Taxation ground rent registry.
Practical Things to Check in Person
Parking. Is a space assigned and does it convey? Is there guest parking? Go look on a Friday night, not a Tuesday afternoon.
Noise. Who is above you, below you, and beside you. Visit at a different time of day than your first showing.
Storage. Does a storage unit convey? Is there any?
The common areas. Walk the halls, the stairwells, the parking area, and the grounds. A well maintained common area tells you the association is functioning. A tired one tells you something too.
Elevators, if there are any. Age and condition. Elevator replacement is a major capital expense.
The Resale Question
Think about your exit while you are buying.
What makes a condo hard to resell: a high rental percentage, a history of special assessments, pending litigation, a building that is not warrantable, dues that have climbed sharply, and deferred maintenance in the common areas.
All of those are visible in the documents you are about to receive. Read them.
Yes, Still Get an Inspection
Buyers sometimes skip the inspection on a condo because the association handles the exterior. Do not.
An inspector will look at your HVAC, your water heater, your plumbing, your electrical panel, and your windows and doors, all of which are typically your responsibility. They will also flag evidence of past water intrusion, which in a condo is worth knowing about.
Let’s Look at One Together
If you are considering a condo in Anne Arundel County, Baltimore City, or anywhere in the corridor, I will help you work through the documents and tell you what I see in them. That review period exists for a reason and it is worth using properly.
Reach out to Team Alpha Charlie of Douglas Realty. If this is your first purchase, Maryland first time homebuyer programs for 2026 is worth reading, and for military and veteran buyers, Maryland BAH rates heading into 2027.
Quick Answers
What is the difference between a condo and a townhome?
A townhome is usually fee simple, meaning you own the structure and the land. A condo is a regime where you own your unit’s interior while the association owns the building, roof, exterior, and common areas, and you own a share of those. Some properties look like townhomes and are legally condos, so ask.
What should I look for in condo documents?
The reserve study and how well funded reserves are, any recent or pending special assessments, litigation, the owner-occupancy percentage, rental restrictions, dues and what they cover, and the rules themselves. Read the meeting minutes too, since assessments show up there first.
Can an association stop me from renting my condo?
Many can. Associations frequently cap the percentage of rented units, impose minimum lease terms or waiting periods, or prohibit rentals entirely. Verify before you write an offer, especially if orders or a job change could require you to rent rather than sell.
Do I need my own insurance if the condo has a master policy?
Yes. The master policy covers the building, not your belongings and usually not your interior finishes. You need your own policy, and you should have your agent review the master policy to see exactly where coverage ends and yours begins.
Is it harder to get a mortgage on a condo?
It can be, because the lender evaluates the building as well as you. Conventional loans generally require the project to meet standards around reserves, owner-occupancy, delinquencies, and litigation, and FHA and VA may require project approval. Tell your lender early and have them check the specific building.
Should I get a home inspection on a condo?
Yes. Your HVAC, water heater, plumbing, electrical panel, and windows are typically your responsibility, and an inspector will also flag evidence of past water intrusion, which is worth knowing in a shared building.
Condominium document review periods, cancellation rights, and disclosure requirements are governed by Maryland law and your specific contract, and differ between condominium regimes and homeowners associations. Lender project eligibility standards vary by program and lender. Review your documents with your agent and, where warranted, an attorney. This is general information, not legal or lending advice.
I am Adam Chubbuck, Team Leader of Team Alpha Charlie of Douglas Realty. Retired U.S. Navy Chief, licensed in Maryland and Virginia, and I have closed more than 350 homes over the past five years across the Baltimore to Annapolis corridor. My team serves buyers and sellers throughout Anne Arundel County, Howard County, Baltimore County, Baltimore City, and the surrounding markets, with deep experience supporting military, veteran, and Department of Defense families.
443-347-6692 | [email protected] | TACMD.com
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Adam Chubbuck
