This article was originally published as part of my 🛠️Tools series at realestateinthedistrict.com. It’s been updated and expanded here on my Substack, DC Real Estate Channel.

You can find links for the full series archive at the bottom of each post.

Part V: Condominium Q&A

What Are CC&Rs, And What’s Included In Them?

Condominium associations operate according to three types of governing documents:

• Covenants, Conditions and Restrictions

• Rules & Regulations

• Bylaws

CC&RS (covenants, conditions, and restrictions) are the package of governing instruments for condominium communities. They stipulate condo owner responsibilities and regulate the use, appearance and maintenance of units and common areas. CC&Rs also define responsibilities and procedures of the condominium board in relation to owners, including rule enforcement and resolution protocols, and insurance requirements, among other aspects of condominium governance.

Bylaws are instruments that dictate matters primarily pertaining to the Board itself, such as election procedures, the various board positions and their associated responsibilities, as well as rules for board governance in general.

Rules and Regulations are concerned with more detailed matters relating to property use, such as smoking prohibition or restrictions, when and how common areas such as fitness centers, pools, atheletic courts, grilling stations, roofdecks and party rooms can be utilized, and pet restrictions. 'Rules and Regulations' is the most often-amended set of condominium instruments.

Who Regulates Condos In DC?

District of Columbia condominiums are regulated by the DC Condominium Act of 1976.

The Act was amended to include an Owner's Bill of Rights with enactment of D.C. Law 21-241. Condominium Owner Bill of Rights and Responsibilities Amendment Act of 2016.

The Condominium Act of 1976 Technical and Clarifying Amendment Act of 1992 (D.C. Law 9-82) regulates the formation, governance, registration and the sale of condominium units;  D.C. Official Code § 42-1901-01 et. seq. (2001), as amended.

The Rental Housing Conversion and Sale Act of 1980, as amended (D.C. Law 3-86) regulates conversion of property into a condominium or cooperative, relocation assistance, the tenant organization registration, the registration of rental residential property offered for sale and tenant opportunity to purchase rights. D.C. Official Code § 42-3401.01 et. seq. (2001), as amended District of Columbia Municipal Regulations, title 14, chapter 47

DHCD Department of Housing & Community Development, is responsible for:

• Affordable Dwelling Units

• Condo and Co-op Conversion and Sales

• Housing Provider Ombudsman

• Housing Counseling

• Housing Resource Center

• Inclusionary Zoning

• Rent Control

The U.S. Department of Housing and Urban Development is responsible for enforcing the federal Fair Housing Act, which prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, because of race, color, religion, sex, familial status, national origin, and disability.

The DC Office of Human Rights enforces the District of Columbia Human Rights Act of 1977 (as amended), which outlaws discrimination based on 23 protected traits for people that live, visit or work in the District of Columbia.

Can I Install A Washer & Dryer In My Unit?

The short answer is "maybe."

Your condominium's rules and regulations should include a section on installation of in-unit washers and dryers.

Buyers searching for properties with the potential for addition of these appliances can filter listings with building amenities that include 'community laundry,' This notation might indicate that the building is not set up for individual installs.

Older DC condo buildings may not have made the plumbing and electrical improvements necessary to facilitate the use of in-unit washers and dryers.

If the building has a community laundry, but the listed unit includes 'in-unit washer/dryer,' check with the management company to confirm that such an upgrade is 'legal' according to the condominium rules, and that proper steps, such as board and/or architectural review, were followed and the install was formally approved.

If plumbing was altered or added for such an improvement, a permit is required. Check with the Department of Building and/or DC Scout records to confirm that a permit was obtained and the work inspected.

Violations for un-approved washers and dryers, as well as permit violations, can result in the appliances' removal and repair to any components not approved or meeting code. These violations transfer to purchasers, so it's important to conduct your due diligence.

Are DC Condoa A Good Investment?

It depends on the project quality and scope, it's location and proximity to amenities DC residents consider vital, such as Metro access, groceries, and restaurants. Neighborhood reputation and conditions play a large part in value, as do:

• Market conditions

• Unit size and floor level

• Floor plan and unit attributes

• Building amenities, including concierge and package room

• Monthly condo dues

• Parking

• Storage

• Views

• Elevators

• Builder reputation

• Management quality

Condominiums are often the first property type to drop in value when the market declines, and the last to recover, so it's important to choose a project and unit that have as many positive attributes as possible.

Will You Review My Condo Docs For Me?

No. Your own due diligence is required. Only you can decide if you’re comfortable with the terms of the association documents. Real estate agents are not permitted to interpret legal language or assess financials. We can not perform as CPAs or attorneys unless we are separately licensed for this purpose. Please solicit the assistance of theese professionals if the need arises.

Can I Sue A Condominium Association Or Board?

This is a legal question, and we are not attorneys. Here are some paraphrased  responses from online experts & authorities:

• Board members have certain fiduciary duties to uphold, which include the duty of care. Failure to uphold these duties can result in homeowners suing condo associations for negligence.

• Embezzlement of corporate funds, fraud and self-dealing can deplete association assets and harm owners. In this circumstance, unit owners may want to sue the offending Board member(s). Such a lawsuit is called a derivative action.

• DC law does provides some immunity to board members to encourage volunteerism, but it is not absolute and can be overcome if the board member's actions qualify as malicious, fraudulent, grossly negligent or violate governing rules or laws. Examples of this might be:

  • Breach of Contract: The association or board has violated the condominium's governing documents

  • Negligence: The association failed to maintain common areas or adequately address safety concerns, and the failure led to harm

  • Mismanagement of Funds: The association misused or misappropriated funds collected through dues

  • Discrimination: Engagement in discriminatory practices that violates Fair Housing laws

  • Selective Rule Enforcement: The association enforces rules inconsistently or unfairly (unequal treatment)

  • Failure to Comply with the Condominium Act: The DC Condominium Act outlines specific rights and responsibilities of both the association and unit owners, and violations of these provisions can lead to legal action

• Condo board members use the Business Judgement Rule to protect themselves from liability. According to the law, the board of directors is immune from personal liability when it can be proven that their actions or decisions were reasonable and made in good faith.

• Typically, the Business Judgement Rule decides in favor of the Board. Board seats are volunteer positions. Few or no community members would agree to provide unpaid service to the board if they could be held legally liable for unpopular decisions. A judge may dimiss the case if the board member(s) are perceived to have acted within the scope of their authority, not fraudulently or unconscionably, even if the decision-making in question was likely poor. To prevail, a unit owner must establish that the condo board member(s) failed to uphold their fiduciary duty to act in the best interest of the association.

Sources:

DC Code § 42–1902.09. Compliance with condominium chapter and instruments:

(a) Any lack of compliance with this chapter or with any lawful provision of the condominium instruments shall be grounds for an action or suit to recover damages or injunctive relief, or for any other available remedy maintainable by the unit owners’ association, the unit owners’ association’s executive board, any managing agent on behalf of the unit owners’ association, an aggrieved person on his or her own behalf, or, in an otherwise proper case, as a class action.

(b) The decisions and actions of the unit owners’ association and its executive board shall be reviewable by a court using the “business judgment” standard. A unit owners’ association shall have standing to sue in its own name for a claim or action related to the common elements. Unless otherwise provided in the condominium instruments, the substantially prevailing party in an action brought by a unit owners’ association against a unit owner or by a unit owner against the unit owners’ association shall be entitled to recover reasonable attorneys’ fees and costs expended in the matter.

(Mar. 29, 1977, D.C. Law 1-89, title II, § 209, 23 DCR 9532b; Mar. 8, 1991, D.C. Law 8-233, § 2(m), 38 DCR 261; June 21, 2014, D.C. Law 20-109, § 2(c), 61 DCR 4304.)

Section References

This section is referenced in § 42-1903.13.

Effect of Amendments

The 2014 amendment by D.C. Law 20-109 added (b).

Cross References

Liens for unit assessments, enforcement and foreclosure sales, see § 42-1903.13.

📬 Want personal guidance or have questions about multifamily home types in the District? Reply here or schedule a consult. I’ll help you decode it all!

🧠 Series Archive

The Washington DC Condominium Guide

An in-depth series for Washington DC buyers navigating condo purchases.

📚 Parts 1 - 5

👉 Part 1: Condo Basics

What is a condominium? How does condo ownership work? Why buy a DC condo?

👉 Part 2: What Does The Monthly Fee Cover?

Does the monthly association fee seem high? What does it cover, exactly? What’s a Capital Contribution? Breaking down the monthly cost of condominium ownership.

👉 Part 3: Financing a DC Condo

Learn about condo financing options, what conditions make financing difficult or impossible and Zuzu’s little contract clause that protects buyers’ earnest money deposits if a building is unwarrantable.

👉 Part 4: Condo Resale Certificate Packages

What are ‘condo docs’? Learn what should be included, what to review and the importance of buyer due diligence. DC’s right-of-rescission explained, the DC Condo Act outlined + legislative updates and links.

👉 Part 5: Condo Q&A

Answers to common questions about purchasing a Washington DC condominium.

🧰 This post is part of a multi-part series originally published as a long-form article in the Tools section of my website, realestateinthedistrict.com.

Each post is being updated for this Substack channel, and optimized for clarity and readability.

The original long-form Tools pages will remain on my website for reference purposes until July 23, 2025.

Disclaimer:

We are not attorneys, legal experts or CPAs. The information presented on this channel is derived from reliable sources, but should not be considered legal, financial or investment advice. Susan Isaacs and Compass, their principals and/or representatives, do not guarantee or warrant its accuracy, completeness, or applicability to any specific transaction. Homebuyers should read applicable D.C. law and code themselves as part of their due diligence, and seek help from licensed, qualified professionals for interpretation and application to their specific transaction.

This article was originally published as part of my 🛠️Tools series at realestateinthedistrict.com. It’s been updated and expanded here on my Substack, DC Real Estate Channel.

You can find links for the full series archive at the bottom of each post.

Part IV: Condominium Resale Certificate Packages

What Are “Condo Docs”?

This package provides buyers of DC condos with a overview of the property's finances, condo association rules and regulations, and other materials pursuant to "DC Code Section 42-1904.11. Resale by unit owner."

The package is named “Condominium Resale Certificate” but it is commonly known as the “condo docs.” These used to be hard copies, hand-delivered in huge binders. Thank goodness those days are over! Now they’re delivered electronically.

What’s Included? Tell Me In 30 Seconds.

Here’s what the District of Columbia Condominium Act (as amended) says should be included, and when:

The unit owner shall obtain from the unit owners’ association and furnish to the purchaser on or prior to the 10th business day following the date of ratification of the contract of sale, a copy of the condominium instruments and a certificate setting forth the following:

• Appropriate statements pursuant to Section 42-1903.13(h) and, if applicable, Section 42-1903.15, which need not to be in recordable form;

• A statement of any capital expenditures anticipated by the unit owners’ association within the current or succeeding 2 fiscal years;

• A statement of the status and amount of any reserves for capital expenditures, contingencies, and improvements, and any portion of such reserves earmarked for any specified project by the executive board;

• A copy of the statement of financial condition for the unit owners’ association for the then most recent fiscal year for which such statement is available and the current operating budget, if any;

• A statement of the status of any pending suits or any judgments to which the unit owners’ association is a party;

• A statement setting forth what insurance coverage is provided for all unit owners by the unit owners’ association and a statement whether such coverage includes public liability, loss or damage, or fire and extended coverage insurance with respect to the unit and its contents;

• A statement that any improvements or alterations made to the unit, or the limited common elements assigned thereto, by the prior unit owner are not in violation of the condominium instruments;

• A statement of the remaining term of any leasehold estate affecting the condominium or the condominium unit and the provisions governing any extension or renewal thereof; and

• The date of issuance of the certificate.

Small and self-managed associations may not be required to offer the same resale packages as larger, professionally managed associations. Check the provisions in the DC Condo Act for clarity, and consult a professional to assist you with review.

If the required instruments and certificate are not furnished to the purchaser on or prior to the 10th business day following the ratification date of the contract of sale, the purchaser shall have the right to cancel the contract by giving notice in writing to the seller prior to receipt of the condominium instruments and certificate, but not after conveyance under the contract.

What Is ‘Right Of Rescission’?

By definition, “rescission” is the revocation, cancellation, or repeal of a law, order, or agreement.

The DC Condo Act (reference your purchase agreement) essentially gives buyers the right to review public offering statements, association documents and/or resale certifications for a specified number of days from date of receipt and withdraw from an applicable Washington DC real estate transaction should they not find details acceptable.

I wrote an entire page about rescission periods. Take a look:

RESCISSION PERIODS

Buyer Due Diligence Checklist

✅ Review:

• Current budget and financial condition, reserve funds

• Current Bylaws, architectural guidelines, CC&Rs (Covenants, Conditions and Restrictions), rules and regulations

• Monthly association fee and capital contribution

• Master Insurance Policy coverage

• Occupation limitations (number of people who may occupy a unit)

• Statement of unpaid fee assessments, special assessments, and/or planned assessments

• Records of current/pending legal action or judgements by or against the developer, association, board or unit owner

• Certification of filing for the association’s annual report to state board (some associations exempt)

• Records of approved alterations to the unit, if any

• Violation notices to current unit owner(s)

• Delinquent fees for unit/owner

✅ Pay Particular Attention To:

• The financial condition of the association or corporation managing the property

• The condominium's investor ratio (owner-occupents vs renters) and cap, if any on rentals (subject to percentage caps that can render a building unwarrantable)

• Rental restrictions, if any

• Pet restrictions, if any

• Smoking restrictions, if any

• Percentage of association's commercial property square footage, if any (retail components) subject to percentage caps that can render a building unwarrantable

• Percentage of delinquent dues by owners and duration of delinquencies (subject to percentage caps that can render a building unwarrantable)

• Board member term limits

• Levied or planned special assessments

• Liens or judgements against the association

• Repairs in progress, or a schedule of planned repairs, for association

• Improvements or alterations made to the unit. Are they in compliance with board/association regulations and standards? Did the unit owner obtain the proper permitting and inspections, if required?

• Frequency and increments of dues increases. Is there an annual cap on increases?

• Reserves for major repairs or improvements

• Age and condition of major components such as roofs, HVAC systems, plumbing and electrical, elevators, common area elements

• Minutes for the past 3-6 board meetings. Review for discussions of expenditures, repairs, legal proceedings and other issues that might shed light on the association’s future spending and assessment plans, or issues the association or unit owners are experiencing.

✅ Homestead Deduction:

Owners of condominium units may be eligible to receive the benefits of the District of Columbia Homestead Tax Deduction.

This benefit reduces your real property’s assessed value by $84,000 (savings of $714.00) prior to computing the yearly tax liability.

The Homestead benefit is limited to residential property. To qualify:

• An application must be on file with the Office of Tax and Revenue;

• The property must be occupied by the owner/applicant and contain no more than five dwelling units (including the unit occupied by the owner); and

• The property must be the principal residence (domicile) of the owner/applicant.

• If a properly completed and approved application is filed from October 1 to March 31, the property will receive the Homestead benefit for the entire tax year (and for all tax years in the future). If a properly completed and approved application is filed from April 1 to September 30, the property will receive one-half of the benefit reflected on the second-half tax bill (and full deductions for all tax years in the future).

• 🔗 Links:

HOMESTEAD DEDUCTION DC

DHCD REG FOR NEW CONDOS

NEW CONDO OWNERS NEED TO KNOW

Getting into the weeds…

DC Condo Act And Legislative Updates

Familiarize yourself with the DC Condo Act. This is the governing legislation for condominiums in the District.

The District of Columbia Condominium Act of 1974 was amended in 2022, effective in 2023;

The Act was amended in 2016. The Condominium Owner Bill of Rights and Responsibilities Amendment Act of 2016, became effective April 7, 2017;

The Act was amended in 2014.

DC Law 24-262. Condominium Warranty Claims Clarification Amendment Act of 2022

D.C. Act 24-262 amends the Condominium Act of 1976 to clarify standards and procedures governing the resolution of a claim filed upon a condominium developer's warranty against structural defects, to provide that a judicial, non-judicial, regulatory, or administrative proceeding for breach of a warrant that arises under this act shall be commenced within 5 years after the date the applicable warranty period began, to provide that the filing ofa claim with the Mayor shall not preclude the claimant from also seeking to judicially enforce its claim, and to clarify the penalties for violating a provision of this act.

Primary changes:

• The definition for the term “structural defect” was expanded to include DC building code for violations resulting in 'demonstrable harm' to the health or safety of residents, or if units are conveyed before a Certificate of Occupancy is issued by the DoB, or  prior to substantial completion of the condominium;

• The 'resulting damage' caused by a structural defect may now require tbe developer to repair as part of its warranty obligations. Developers  were previously responsible solely for correcting the defect, not necessarily liable for any resulting damages;

• Requires developers to  obtain certified documentation for the project's estimated “hard costs” and supplement their 10% bond with additional funds if actual costs exceed estimated costs by a certain amount. The Mayor must establish a searchable online database for condominium bonds.

• Clarifies the deadline for submitting a claim on the developer's bond. The warranty period is two years from the date of sale, but the time to file claims will be 5 years from the date of sale. Notice and response provisions have been established for associations and developers to follow prior to making claims with the city.

• The Act prohibits condominium instruments from restricting an association from asserting claims for defects against a developer. Previously, developers could (and would) insert procedural roadblocks in the condominium instruments designed to discourage associations from asserting claims. These included requiring an association to engage in mandatory alternative dispute resolution (mediation or arbitration);

• Added with this Act are provisions for appeals of any warranty bond decision to DC’s Office of Administrative Hearings;

• The Act requires a Claims Fund to be established for financial assistance to associations making claims on the warranty bond, for expenses such as inspections, cost estimates, and attorneys’ fees. Eligibility is based on financial need.

These legislative changes to the DC Condominium Act affect:

• Condominium boards

• Unit owners

• Project developers

🔗 Links:

Warranty Claims Act 2022

Registration & Offering

DHCD Regs For New Condos

New Condo Boards

GSE Compliance Changes 2023

Freddie Mac & Fannie Mae Updated Condo | Co-Op Guidelines

In cooperation with the FHFA, Government-sponsored enterprises (GSEs)  Freddie Mac and Fannie Mae updated their guidance for condominiums and cooperatives in 2023, two years after issuance of a 2021 letter by Fannie Mae that created temporary requirements for condos and co-op projects. This action was prompted by the partial collapse of Champlain Towers South condominium in Florida that killed 98 people and injured 14 others.

Primary Changes

Project standards policies for properties in need of critical repairs and special assessments: The project review requirements update is intended to assist lenders in identifying projects that may have issues resulting in unsafe conditions.

🔗 Sources & Resources

Fannie Mae

FNMA Ineligible Projects

Freddie Mac Repair Assessment

FHLMC Condo Mortgages

Who Is Affected?

Any Association legally recognized as a “condominium” or a “cooperative” with more than five units. Regarding the term “condominium”;  Some associations govern properties marketed as townhomes, but which are  legally defined as condominiums. The designation of a property can be confirmed in the Declarations and Articles of Incorporation for the project.

Ultimately, condo buyers are affected—and better protected.

The Fannie Mae Update

Project standards policies update to address projects in need of critical repairs, and projects that have material deficiencies (such as significant deferred maintenance) or special assessments.

These requirements apply to all loans secured by units in condo projects (condo loans) and all cooperative share loans secured by share ownership in a co-op project (co-op share loans) with five or more attached units, regardless of the project review type.

The requirements also apply to loans eligible for delivery under the waiver of project review policy. These project review requirements:

▪ Define critical repairs, material deficiencies, and significant deferred maintenance, including defining routine repairs that are not considered critical;

▪ Prohibit sale of condo loans and co-op share loans in projects in need of critical repairs;

▪ Prohibit sale of condo loans and co-op share loans in projects with current evacuation orders due to unsafe conditions;

▪ Require a review of all structural or mechanical inspection reports that have been completed within 3 years of the project review date;

▪ Provide new requirements for condo or co-op projects with special assessments;

▪ Prohibit sale of condo loans and co-op share loans in projects with unfunded repairs totaling more than $10,000 per unit, and;

▪ Prohibit sale of condo loans and co-op share loans in projects that have an "Unavailable" status in Condo Project Manager™ (CPM™).

This guidance can be found in Fannie Mae's Selling Guide Update which was created in cooperation with the Federal Housing Finance Agency (FHFA).

The Freddie Mac Update

Freddie Mac’s revised guidance was presented as an update to its Condo Project Advisor. All requirements became effective on September 18 2023.

In its messaging to lenders, Freddie Mac wrote:

"On July 29, 2023, we’ll update the “Incomplete Assessment” feedback message in Condo Project Advisor® to indicate when a condo project may need critical repairs. Here’s what you [lenders] need to know:

Currently, if a Project Assessment Request (PAR) submitted to Condo Project Advisor receives an “Incomplete Assessment” feedback message (CPAX1013), that’s an indication that the tool can’t assess the project. This includes the requirement in Section 5701.3(n) that a project is ineligible for sale to Freddie Mac if it needs critical repairs.

On July 29, 2023, we’ll make things easier for you [lenders] by updating one of the “Incomplete Assessment” messages to alert you that the project may need critical repairs. You can determine whether or not a project does indeed require repairs. This can assist you in determining compliance with Guide Sections 5701.2(a) and 5701.2(b)."

🔗 Key Link | Freddie Mac

Critical Repairs & Evacuation Orders: Condominium and Cooperative Project Requirements Tutorial

Summary:

Reserve Study & Funding

A reserve study will satisfy most of the requirements as long as the association is following the recommendations laid out in that study. Fannie and Freddie both require that 10% of operating budget goes to Reserves. (note: Fannie waives this requirement if a reserve study is in place and up to date).

New Reserve Requirements

Fannie Mae and Freddie Mac’s newest guideline change has an increased focus on requiring condo and co-op boards to maintain a 10% or greater reserve line item for future maintenance. Although this requirement has been in place for years, the 10% reserve line-item has often been left out of condo and co-op budgets so unit owners could enjoy lower monthly dues. Some condo and co-op boards have flat-out refused to add the reserve line item to their operating budget.

Freddie Mac still accepts a reserve study to outline appropriate and accurate reserve funding in lieu of the 10% reserve line item.

New Condominium Questionnaire

A new 3-page addendum to the existing condominium questionnaire has been issued. The following are two of the key additions:

• When was the last building inspection by a licensed architect, licensed engineer, or any other property inspector, and did the last inspection have any findings related to the safety, soundness, structural integrity or habitability of the buildings?

• Is the association aware of any deficiencies related to the safety, soundness, structural integrity, or habitability of the buildings?

Lenders now request that associations make affirmative representations about the structural soundness of the buildings. Previously, associations were simply providing information about the property, and the lender would make its own determinations. Boards may now be held accountable if their affirmative representation is inaccurate.

Compliance

• Properties must meet key criteria, including a reserve account with capital sufficient to cover future repairs and replacement of common area mechanical and structural components.

• Compliant properties must also have a current reserve study

• Compliant properties must provide a completed baseline questionnaire which address new GSE questions by attaching an updated reserve study, engineers report, or their equivalent for review.

• Condo and co-op properties must now reserve adequate capital for component repairs. If they do not comply with the new guidelines, financing will not be available.

• Buildings must obtain professional evaluations of components, set aside appropriate funds for future capital repairs and complete repairs to components whose maintenance has been deferred or ignored.

Part V Preview:

Q&A is the final part of this series. I’ll answer common questions about District of Columbia condominiums and the purchasing process. If you have a question that isn’t addressed, drop a comment and I’ll reply!

📬 Want personal guidance or have questions about multifamily home types in the District? Reply here or schedule a consult. I’ll help you decode it all!

🧠 Series Archive

The Washington DC Condominium Guide

An in-depth series for Washington DC buyers navigating condo purchases.

📚 Parts 1 - 5

👉 Part 1: Condo Basics

What is a condominium? How does condo ownership work? Why buy a DC condo?

👉 Part 2: What Does The Monthly Fee Cover?

Does the monthly association fee seem high? What does it cover, exactly? What’s a Capital Contribution? Breaking down the monthly cost of condominium ownership.

👉 Part 3: Financing a DC Condo

Learn about condo financing options, what conditions make financing difficult or impossible and Zuzu’s little contract clause that protects buyers’ earnest money deposits if a building is unwarrantable.

👉 Part 4: Condo Resale Certificate Packages

What are ‘condo docs’? Learn what should be included, what to review and the importance of buyer due diligence. DC’s right-of-rescission explained, the DC Condo Act outlined + legislative updates and links.

👉 Part 5: Condo Q&A

Answers to common questions about purchasing a Washington DC condominium.

🧰 This post is part of a multi-part series originally published as a long-form article in the Tools section of my website, realestateinthedistrict.com.

Each post is being updated for this Substack channel, and optimized for clarity and readability.

The original long-form Tools pages will remain on my website for reference purposes until July 23, 2025.

Disclaimer:

We are not attorneys, legal experts or CPAs. The information presented on this channel is derived from reliable sources, but should not be considered legal, financial or investment advice. Susan Isaacs and Compass, their principals and/or representatives, do not guarantee or warrant its accuracy, completeness, or applicability to any specific transaction. Homebuyers should read applicable D.C. law and code themselves as part of their due diligence, and seek help from licensed, qualified professionals for interpretation and application to their specific transaction.

This article was originally published as part of my 🛠️Tools series at realestateinthedistrict.com. It’s been updated and expanded here on my Substack, DC Real Estate Channel.

You can find links for the full series archive at the bottom of each post.

Part III: Condominium Financing

What Are The Options? Tell Me In 20 Seconds.

Washington DC condominiums can be financed with the same types of loans used for single family properties;

• Conventional mortgage loans: Conforming (matches underwriting guidelines set by GSEs Fannie Mae and Freddie Mac) loans offered by private lenders;

• FHA loans: Mortgage loans insured by the Federal Housing Administration (FHA)*

• VA loans: Mortgage loans guaranteed by the Department of Veterans Affairs (VA). These loans are offered at zero downpayment, with specific provisions designed to help eligible veterans, service members, and surviving spouses purchase, build, or refinance homes*

• USDA loans: Subject to rural area eligibility, condominium project and borrower eligibility

• Assumable mortgage loans: Subject to existing loan type and seller offerings

• Seller Financing: Offered by individual sellers

*Condominiums must meet certain criteria to be FHA and VA approved. Many DC condominiums qualify for these lending programs. Your lender should have a current list of qualifying DC condos.

Want more detail? Use this LLM prompt:

As a residential mortgage expert in the District of Columbia, list the specifics of ____________ (mortgage type), including qualifying criteria for borrowers and GSE underwriting guidelines.

What Are Condops And Condotels?

Though a rarity, condops do exist in the District of Columbia. Here’s what you need to know: 

1. Condop: A hybrid of condo and co-op that typically (but not always) includes commercial spaces (defined as the condo units) such as ground floor retail or arts spaces + residential housing (co-op units) on upper floors. This type of mixed-use building results when one association governs two types of use and the commercial use square footage exceeds GSE underwriting guidelines. Residential owners have shares in the co-op corporation, which holds title to the residential portion of the building and governs its property. Commercial units are independently owned and operated. The residential co-op board has no jurisdiction over this portion of the property or their owners;

2. Condotel: A condominium building operated as a hotel, allowing short term rentals by individual unit owners. This type of hybrid would be subject to both short term rental restrictions + hotel guidelines in the District of Columbia.

Zuzu Notes:

Amenities + staff = higher dues

Some amenities, like fitness rooms, elevators and parking are desirable and contribute to higher resale values, but those condominiums with extensive amenity lists tend to have prohibitively high association dues, especially as the buildings age.

What Is ‘Warrantability’ And How Does It Affect DC Condos?

Warrantable vs. Non-Warrantable Condos

Warrantable condos are those able to be financed with conventional loans. They meet Fannie Mae and Freddie Mac requirements regarding owner occupancy (renter vs owner occupancy ratio), financial health of the association, and percentage of commercial space (portion of restaurant, retail or office space that is part of the same association as the residential housing portion).

Warrantable condominiums are eligible for conventional loans that offer favorable terms such as lower interest rates and down payment requirements as compared to loans for unwarrantable condos.

Non-warrantable condos don't meet GSE standards, which makes them difficult to finance through traditional methods. Special loan programs for non-warrantable condos can carry less favorable loan terms. In some circumstances, cash is the only payment option available.

Warrantability is a tricky part of evaluating condominiums because the information needed to discern whether or not financing will be an issue is not readily available to buyers. Why? There is a procedural gatekeeper. Warrantability information for the association is requested in the form of a ‘condo questionnaire’ sent to the association by the buyer’s lender—after the property is already under contract. Associations often charge a fee for completion of this form, which is returned to the lender, not the borrower. Additional information is found in the condominium resale certificate package (aka ‘condo docs’) which are typically not directly available to buyers. The resale package is ordered and paid for (usually hundreds of dollars) by the seller, once the property is under contract. The regulations on timing for delivery are often in conflict with the timing of contract contingencies. All of this puts condo buyers at a disadvantage, requiring them to contract on condo properties and initiate loans without full understanding of the property’s warrantability.

Here's the general criteria for warrantability:

✅ Occupancy:

A significant portion of units must be owner-occupied primary or secondary residences, not investor-owned rental properties. FNMA typically requires at least 50% owner-occupancy, and FHLMC requirements are similar.

✅ Association Financial Stability:

Financial reserves must be sufficient to cover future repairs and maintenance. A reserve fund of at least 10% of the annual budget is typically required.

✅ Delinquency Rates:

Fannie Mae limits delinquencies on association dues payments. There can be no more than 15% of units 60 days or more past due on condominium dues. Freddie Mac has more stringent requirements. No more than 15% of units can be delinquent on dues for 30+ days, and no more than 15% of units can be delinquent 60+ days on each special assessment.

✅ Litigation:

There should be no pending lawsuits against or involving the association or the project’s developer that relate to the property's structural integrity, safety, or other significant issues. Litigation can derail a mortgage loan and result in a denial.

In 2010, when many lawsuits were brought against developers following the building boom of the 2000’s, I created and implemented a contract provision that protects buyers from losing earnest money deposits due to the seller’s failure to disclose or ignorance of pending litigation involving the association and developer. This simple, one-line provision has saved more than one buyer from a battle over EMD when no contract contingency existed for financing or appraisal: “Subject to condominium meeting GSE warrantability guidelines.” While it has been questioned often by listing agents, it has never been excluded.

✅ Percentage Of Commercial Space:

Both GSEs limit commercial or non-residential space in a condominium project to 35% of the total of the building’s or full project’s above + below grade square footage in order to be considered warrantable. Calculations for this rule consider the total square footage of the project + the square footage dedicated to commercial or non-residential space.

✅ Short Term Rentals:

Fannie Mae’s underwriting guidelines say:

• Even though any STR unit lease will be classified as ‘commercial,’ the property is still residential in nature (not operated as a hotel, condotel, or other single room occupancy arrangement). This mention includes references to ‘space and income limitations per Form 4660,’ which is part of the Fannie Mae Multifamily Guide. It outlines underwriting requirements for space and income limitations for multifamily properties. Limitations aren’t explicit, but the guide references them within the context of underwriting aspects like debt service coverage ratio (DSCR), loan-to-value (LTV) ratio, and interest rate tests. Specifically, the guide indicates that these limitations apply when determining the maximum allowable loan amount and other financial parameters.

• No more than 5% of the Property’s units are available for STR

• There’s also a list of required questions FNMA requires borrowers to answer if STRs are a part of the equation, including; Borrower's action plan for handling liability issues for STR tenants at the Property, Safety concerns for non-STR tenants; Length of time the STR has been in place; Borrower's or master tenant’s insurance coverage for STR, whether or not the STR units are furnished or unfurnished; and confirmation that the STR is legally permissible and in compliance with applicable laws and zoning.

So STRs complicate things and this is just one of the reasons most condominium associations in the District of Columbia prohibit them.

✅ Single Entity Ownership:

Both GSEs have restrictions on single entity ownership of units in a condominium.

Single-entity ownership means an individual, investor group, partnership, or corporation owns more than the following total number of units in the project:

Fannie Mae underwriting guidelines impose limits on:

• Projects with 5-20 units - To 2 units

• Projects with 21+ units - To 20%

Units currently subject to any rental or lease arrangement must be included in the calculation. This includes lease arrangements containing provisions for the future purchase of units such as lease-purchase and rent-to-own arrangements.

Exclusions from the single-entity ownership calculation include:

• Units owned by the project sponsor or developer which are vacant and being actively marketed for sale (new construction)

• Units controlled or owned by a non-profit entity for the purpose of providing affordable housing, and units held in affordable housing programs (including units subject to non-eviction rent regulation codes), or units held by higher-education institutions for a workforce housing program

The single-entity ownership requirement may be waived when the transaction is a purchase transaction that will result in a reduction of the single-entity ownership concentration. Then, the following requirements must be met:

• Units owned by the single entity represent no more than 49% of the units;

• Evidence is required that the single entity is marketing units for sale to further reduce single-entity ownership, with the goal of reducing the concentration to 20% or less of the project units;

• The single entity is current on all dues and other assessments; and

• There are no pending or active special assessments in the project.

✅ Project Completion:

The condominium project should be completed, and the association controlled by unit owners.

For a condo project to be deemed "warrantable" by Fannie Mae and Freddie Mac, it needs to be ‘substantially complete.’ That means means the common elements are finished and the units are completed, except for buyer preference selections. More detail on this:

1. Legal Phase Or Building:

Subject legal phase or building: The specific legal phase or building containing the unit being financed, as well as any preceding legal phases where units have been offered for sale, must be "substantially complete".

Legal phases: Legal phases are defined by the project's official documents, not developer construction or marketing phases.

Buyer selection items: Typical buyer selection items (appliances, flooring, etc.) are generally not required to be installed, but any choices involving modifications to the unit floor plan must be completed.

2. Established Projects:

Established projects must be 100% complete and at least 90% of the units must have been conveyed to buyers.. There are exceptions for projects where the developer retains units for rent, provided construction is complete, no further phasing is planned, and the developer's rental share does not exceed 20%.

Read the full Fannie Mae and Freddie Mac guidelines for project completion.

2025 Conforming Loan Limits

The conforming loan limit is the maximum amount a homebuyer can borrow with a mortgage. The 2025 limit for the District of Columbia is 150% of the baseline limit of $806,500 for a single-family home. or $1,209,750.

The conforming loan limits for multifamily are:

2 units: $1,032,650

3 units: $1,248,150

4 units: $1,551,250

The Federal Housing Finance Agency (FHFA) sets conforming loan limits, which are based on home prices across the country.

Part IV Preview:

In the fourth part of this series, we’ll discuss Resale Certificate Packages (“Condo Docs”) for District of Columbia condominiums.

📬 Want personal guidance or have questions about multifamily home types in the District? Reply here or schedule a consult. I’ll help you decode it all!

🧠 Series Archive

The Washington DC Condominium Guide

An in-depth series for Washington DC buyers navigating condo purchases.

📚 Parts 1 - 5

👉 Part 1: Condo Basics

What is a condominium? How does condo ownership work? Why buy a DC condo?

👉 Part 2: What Does The Monthly Fee Cover?

Does the monthly association fee seem high? What does it cover, exactly? What’s a Capital Contribution? Breaking down the monthly cost of condominium ownership.

👉 Part 3: Financing a DC Condo

Learn about condo financing options, what conditions make financing difficult or impossible and Zuzu’s little contract clause that protects buyers’ earnest money deposits if a building is unwarrantable.

👉 Part 4: Condo Resale Certificate Packages

What are ‘condo docs’? Learn what should be included, what to review and the importance of buyer due diligence. DC’s right-of-rescission explained, the DC Condo Act outlined + legislative updates and links.

👉 Part 5: Condo Q&A

Answers to common questions about purchasing a Washington DC condominium.

🧰 This post is part of a multi-part series originally published as a long-form article in the Tools section of my website, realestateinthedistrict.com.

Each post is being updated for this Substack channel, and optimized for clarity and readability.

The original long-form Tools pages will remain on my website for reference purposes until July 23, 2025.

Disclaimer:

We are not attorneys, legal experts or CPAs. The information presented on this channel is derived from reliable sources, but should not be considered legal, financial or investment advice. Susan Isaacs and Compass, their principals and/or representatives, do not guarantee or warrant its accuracy, completeness, or applicability to any specific transaction. Homebuyers should read applicable D.C. law and code themselves as part of their due diligence, and seek help from licensed, qualified professionals for interpretation and application to their specific transaction.

This article was originally published as part of my 🛠️Tools series at realestateinthedistrict.com. It’s been updated and expanded here on my Substack, DC Real Estate Channel.

You can find links for the full series archive at the bottom of each post.

Part II: Association Fees

What Is An Association Fee?

All Washington DC condominiums assess a monthly fee to cover maintenance, operation and administrative costs. These fees are often referred to as “condo dues” because they’re assessed to every member of an association. Condo dues typically take the form of a monthly payment, the amount of which is based on the square footage of the home, plus any limited common elements assigned to the unit (such as a parking space or storage unit).

Tell Me What Condo Dues Cover In 20 Seconds

Association dues in the District are different for each condominium, but primarily cover: 

• Common area maintenance (exterior structure, grounds, upkeep of lobby and other common areas, common area furnishings, interior hallways, elevators and stairways, trash facilities, trash collection, garage maintenance, and amenity area & equipment upkeep);

• Mechanical maintenance, repair and replacement (electrical, plumbing, heating and cooling for common areas);

• Roof and gutter maintenance;

• Staff (such as maintenance staff, concierge, security staff, etc.);

• Management (on-site or off-site);

• Services;

• Master Insurance Policy (covers the common areas of the condominium);

• Legal retainers and fees.

Think of association dues as shared costs for property operation and maintenance that single family homeowners pay individually, some of which aren’t realistic (concierge, maintenance crew) in non-multifamily residential settings.

Zuzu Notes:

Larger DC condominium projects typically include water, sewer, trash and snow removal as part of covered items in condo dues.

Some condominiums may include water or other utilities, especially those with common laundry facilities.

How Often Should Condo Dues Increase, and by what percentage?

Most experts recommend an annual increase for condominium dues so that the association’s reserves can meet demands of inflation and cover rising costs associated with wear and tear on buildings, equipment and cosmetic features.

The recommended increase varies between 3-5%, depending on the association’s budget, reserves, repair and replacement needs, etc.

Here's what associations generally take into account:

1. Inflation: Annual ‘cost of living’ increases on existing services, goods and staff

2. Future Projects: Setting aside funds for upcoming improvements and upgrades, and/or addition of amenities such as a sports court or fitness center

3. Required Minimum Reserves: GSE (government-sponsored enterprises) FNMA (Fannie Mae) and FHLMC (Freddie Mac) set the standards lenders must follow to ensure the loans they sell to them are eligible for purchase. One of these standards is the requirement for condominiums to maintain a minimum level of reserves—sufficient to cover the costs of repairing and replacing major capital items as they approach the end of their life expectancy. Fannie Mae updated its guidelines in August 2023, requiring appraisers to place addded focus on safety features and infrastructure, examining significant deferred maintenance, as well special assessments and condominium loans. The Condominium Act also outlines reserve requirements, which can vary by geographical location.

Here are the advantages of a well-funded association:

✅ Eliminates Deferred Maintenance:

Associations that are financially stable have the ability to proactively address maintenance issues that would otherwise escalate and become more expensive and damaging.

✅ Helps Prevent Special Assessments:

Sufficient reserves are key to an association’s overall financial stability and ability to cover unexpected or major repair costs. Without adequate reserves, special assessments might be required to keep the condominium operational and in good repair. Special assessments can be a substantial financial burden on residents and a hinderance to resale.

✅ Complies With Lender And Jurisdictional Requirements:

Many lenders and underwriting guidelines require an adequate level of reserves for condominium projects to be eligible for financing.

In addition, some states have statutory requirements for reserve studies. The District of Columbia and Maryland do not have statutory guidance or a statutory requirement for a reserve study. Maryland does have a reserve funding requirement. Virginia has statutory guidance for reserves, but not a statutory requirement.

✅ Enhances Property Value:

Home buyers and lenders are reassured of a condominium’s value when the association is circumspect about finances, commissions reserve studies, and ensures that the reserve fund is adequate for its needs, both present and future. This contributes to the property’s value and reputation.

What Happens When Monthly Dues Get Too High?

If you’ve ever seen a listing for a 500 square foot condo with a $900 monthly fee, you’ve asked yourself; “What went wrong here?”

Since fees escalate annually—or should—it stands to reason that long-established condominiums will have unit fees far exceeding those of brand new condominiums and those with elements still under warranty.

At some point, however, it’s difficult to build value to buyers on the resale market when the monthly association fee equals or exceeds the monthly mortgage payment for a unit. Typically, this results in unit values dropping. The home is worth less because the operation costs are so high—-and while mortgage interest may be tax deductible, condo fees for owner-occupied units generally are not.

When you’re shopping for a condominium, it’s important to look at fees, the age and condition of the property, budget, reserve study and other documentation included in the association documents in addition to sales price. You may find that what initially seemed like a bargain is actually a poor investment.

Explain Special Assessments

If an association is underfunded and a major, unexpected repair surfaces, a special assessment may be needed to offset the cost.

The dreaded phrase “special assessment” can inflict considerable trauma on condo owners, and serve as a red flag to buyers. They are the additional fees levied on unit owners by a condo association when reserves don’t cover a major issue.

Special assessments may become necessary when:

1. Major emergency repairs crop up unexpectedly, or become urgent due to deferred maintenance. Examples include roof failure or damage, structural issues, Plumbing failures, HVAC or electrical failures.

2. Large-scale capital projects that exceed reserves are necessary. Examples can include updating aging infrastructure, replacing swimming pools, rebuilding balconies and terraces.

3. Legal or regulatory compliance. Examples include lawsuits against the association, settlements, fines, etc.

While condo associations secure Master Insurance Policies insurance for common areas, when policy caps are exceeded, costs fall to the unit owners.

Some condo insurance policies offer optional "loss assessment coverage" to help with special assessment costs.

Who Decides If A Special Assessment Is Needed?

The condo board.

How Does Assessment Work?

The assessment is levied against all units, and the amount per unit is typically determined by the percentage of ownership in the building (which is often based on square footage).

Governing documents such as the CC&Rs (Covenants, Conditions and Restrictions) outline the procedures for levying special assessments and may include limitations or voting requirements. In some states, laws regulate special assessments.

Payment of special assessments is typically made in a single lump sum or via an installment plan.

What Is A ‘Capital Contribution’?

It’s a one-time, up-front fee, usually equal to two or three months’ condo dues, for joining the association. Capital contributions are not credited towards condo dues. Every new unit member pays them as part of their closing costs at the time of purchase.

Also known as transfer or initiation fees, capital contributions are deposited into the association’s reserve fund to help cover costs of major repairs, replacements, and additions to common areas and amenities.

Part III Preview:

In the third part of this series we’ll discuss financing for District of Columbia condominiums.

📬 Want personal guidance or have questions about multifamily home types in the District? Reply here or schedule a consult. I’ll help you decode it all!

🧠 Series Archive

The Washington DC Condominium Guide

An in-depth series for Washington DC buyers navigating condo purchases.

📚 Parts 1 - 5

👉 Part 1: Condo Basics

What is a condominium? How does condo ownership work? Why buy a DC condo?

👉 Part 2: What Does The Monthly Fee Cover?

Does the monthly association fee seem high? What does it cover, exactly? What’s a Capital Contribution? Breaking down the monthly cost of condominium ownership.

👉 Part 3: Financing a DC Condo

Learn about condo financing options, what conditions make financing difficult or impossible and Zuzu’s little contract clause that protects buyers’ earnest money deposits if a building is unwarrantable.

👉 Part 4: Condo Resale Certificate Packages

What are ‘condo docs’? Learn what should be included, what to review and the importance of buyer due diligence. DC’s right-of-rescission explained, the DC Condo Act outlined + legislative updates and links.

👉 Part 5: Condo Q&A

Answers to common questions about purchasing a Washington DC condominium.

🧰 This post is part of a multi-part series originally published as a long-form article in the Tools section of my website, realestateinthedistrict.com.

Each post is being updated for this Substack channel, and optimized for clarity and readability.

The original long-form Tools pages will remain on my website for reference purposes until July 23, 2025.

Disclaimer:

We are not attorneys, legal experts or CPAs. The information presented on this channel is derived from reliable sources, but should not be considered legal, financial or investment advice. Susan Isaacs and Compass, their principals and/or representatives, do not guarantee or warrant its accuracy, completeness, or applicability to any specific transaction. Homebuyers should read applicable D.C. law and code themselves as part of their due diligence, and seek help from licensed, qualified professionals for interpretation and application to their specific transaction.

This article was originally published as part of my 🛠️Tools series at realestateinthedistrict.com. It’s been updated and expanded here on my Substack, DC Real Estate Channel.

You can find links for the full series archive at the bottom of each post.

Part I: The Basics

What Is a DC Condominium?

Is it the right choice for you? Let’s find out.

A Washington DC condominium isn’t a certain type of building or architecture. It can take many different shapes and forms. In basic terms, it’s ownership of an individual share in an owner’s association. The definition of a condo “unit” is defined in the governing documents. It can be anything from a commercial or industrial building to a boat dock.

Tell Me About DC Condominium Ownership In 20 Seconds

Here are the basics on residential condo ownership in the District: 

• A standard mortgage loan can be used to purchase a condominium;

• Purchasers of a condominium unit will receive a deed to the unit, and a percentage interest in the common elements;

• Association dues are based on unit size as well as any additional components, including limited common elements controlled by the unit owner (like parking and storage spaces);

• Unit owners must comply with rules and restrictions outlined in the association bylaws;

• Unit owners are eligible to run for a seat on the condo board;

• Depending on the rules, unit owners may have the ability to lease their units;

• Unit owners may sell a condominium unit at will.

Most important factors? Think about reselling before you buy and ask:

• Is the condominium in a location that appeals to the typical DC condo buyer demographic? Consider Metro access, security, convenience to shopping, retail and dining amenities, unit size, floor level, elevator access, storage and parking, in-unit washer/dryer and private outdoor space;

• Is the association well run? Is the building clean, secure and well-maintained? Is the budget healthy? What’s the capital contribution?

• Is the building non-smoking? What is the pet policy?

• Are there rental restrictions? If so, what’s the investor ratio and cap, waiting list length, re-rent delay, minimum lease term, etc.?

• Are association dues higher than the average for buildings in the immediate area?

• Is there a large commercial/retail component that would make financing difficult?

• Does the unit sit over a parking garage door, trash collection area or alleyway? Is it too close to the elevator or trash room?

Zuzu Notes:

Nearly all condominiums in DC prohibit short term rentals (STR) like Airbnb.

Most condominiums require a minimum six month lease for renters.

Why Buy A DC Condominium?

The decision between purchasing a DC condominium and a townhome or single-family home largely depends on individual preferences, lifestyle, and specific needs. Here are some reasons why a buyer might prefer a condominium:

1. Lower Price
   Condos are typically less expensive than other home types in Washington DC. First-time buyers, move-down buyers and buyers of pied-à-terres often choose condominium ownership for this reason.

2. Lower Maintenance Responsibility
   Condominiums involve less hands-on maintenance for individual unit owners. Exterior building and common area maintenance, landscaping, and general upkeep are usually managed by the condo association, allowing residents more time and less responsibility for property care. This appeals to those who travel, utilize the property as an occasional residence, or dedicate an extensive portion of their time to work or other pursuits.

3. Amenities And Services
   Condominiums often offer shared amenities such as fitness centers, package rooms, lounges, roofdecks and swimming pools, as well as concierge, maintenance and management services. They provide added convenience and lifestyle benefits that may be cost-prohibitive or impractical for individuals.

4. Location
   Condos are often situated in desirable DC locations with easy access to public transportation, restaurants, cultural attractions, and other city amenities clustered in areas zoned primarily for multifamily, commercial and retail density.

5. Security

   Many condominiums have security features such as controlled access, doormen, surveillance systems and package delivery services and facilities. This can provide a sense of security, especially for those who travel frequently or reside part-time in the District, that may be more challenging to achieve for an individual residence.

6. Affordability and Lower Upfront Costs

   Condominiums can be more affordable than single-family homes in Washington DC. Lower costs associated with condo living such as shared maintenance and structural repair expenses make homeownership more accessible.

7. Community Living

   Condo living often fosters a sense of community. Residents share common spaces and may participate in condo association activities or meetings, providing opportunities for social interaction and community engagement.

8. Downsizing And Single Floor Living

   Condos can be an attractive option for buyers looking to downsize or simplify their lifestyle. The smaller footprint and one floor options associated with condos mean increased mobility and less upkeep, making it a suitable choice for those seeking an easily accessible and manageable home. One floor living is a primary benefit for many move-down buyers in the District, where multistory single family homes with stairways are the norm.

While condominium ownership and the condo lifestyle have advantages, it's essential for buyers to carefully consider their lifestyle needs, resources, preferences, investment strategy, long-term goals, and compare them to the specific characteristics of individual properties

Part II Preview:

In the next part of this series we’ll break down the monthly fees for District of Columbia condominium ownership.

📬 Want personal guidance or have questions about multifamily home types in the District? Reply here or schedule a consult. I’ll help you decode it all!

🧠 Series Archive

The Washington DC Condominium Guide

An in-depth series for Washington DC buyers navigating condo purchases.

📚 Parts 1 - 5

👉 Part 1: Condo Basics

What is a condominium? How does condo ownership work? Why buy a DC condo?

👉 Part 2: What Does The Monthly Fee Cover?

Does the monthly association fee seem high? What does it cover, exactly? Are there ‘hidden’ fees? What’s a Capital Contribution? Breaking down the monthly cost of condominium ownership.

👉 Part 3: Financing a DC Condo

Learn about condo financing options, what conditions make financing difficult or impossible and Zuzu’s little contract clause that protects buyers’ earnest money deposits if a building is unwarrantable.

👉 Part 4: Condo Resale Certificate Packages (‘Condo Docs’)

What are ‘condo docs’? Learn what should be included, what to review and the importance of buyer due diligence. DC’s right-of-rescission explained, the DC Condo Act outlined + legislative updates and links.

👉 Part 5: Condo Q&A

Answers to common questions about purchasing a Washington DC condominium.

🧰 This post is part of a multi-part series originally published as a long-form article in the Tools section of my website, realestateinthedistrict.com.

Each post is being updated for this Substack channel, and optimized for clarity and readability.

The original long-form Tools pages will remain on my website for reference purposes until July 23, 2025.

Disclaimer:

We are not attorneys, legal experts or CPAs. The information presented on this channel is derived from reliable sources, but should not be considered legal, financial or investment advice. Susan Isaacs and Compass, their principals and/or representatives, do not guarantee or warrant its accuracy, completeness, or applicability to any specific transaction. Homebuyers should read applicable D.C. law and code themselves as part of their due diligence, and seek help from licensed, qualified professionals for interpretation and application to their specific transaction.

Timing the market.

Everyone thinks it means watching mortgage rates and waiting for the “right” listing to

magically appear.

But in DC real estate? That’s a great way to miss your best shot.

I’ve worked with hundreds of buyers, (first-timers, upsizers, downsizers, pied-à-terre buyers, newbie and experienced investors), and I nearly always find that they want to feel “ready” before they act.

Pro Tip: In DC, you act to get ready—not the other way around!

🕒 Common Buyer Timing Mistakes

1. Waiting for rates to drop before getting pre-approved
   Rates move, but competition adjusts faster. If you wait for a better rate, you’re often buying into a hotter, faster market.

2. Searching online for 6 months before talking to an agent
   You’ll end up building your strategy on algorithms, not insight. Zillow doesn’t show all home listings (did you know that?). It also doesn’t know about your local comps, off-market options, or what’s really driving price gaps. Most buyers are shocked to find that the DC market typically sells ahead of comps.

3. Wanting “a few more months to save” but not modeling impact
   Waiting might make sense in certain circumstances, but often the market outpaces your savings rate. If the price of the home you want rises faster than what you’re banking monthly, waiting is a net loss.

✅ What Actually Works in DC

• Start with strategy, not listings.
  The right timeline starts by asking: “What are your primary and financial goals, and what kind of property fits both?”

• Get pre-underwritten early—even if you’re months out.
  You’ll learn what kind of offers you can write, and it’s very possible you’ll catch an off-market or private listing before competition heats up.

• Map your buy vs. rent math with real DC figures.
  I help buyers model 12–24 month break-evens. Sometimes renting is better—but you should know that upfront, not after missing 3 opportunities.

Zuzu’s Truth:

DC real estate doesn’t reward the most patient buyer.
It rewards the most prepared one.

That’s why I created this playbook. It’s not about speed or pressure—it’s about precision.

💬 Want a one-on-one prep session?
Reply here or visit buy at realestateinthedistrict.com to set up a strategic buyer consult.