I sell every kind of home in Philadelphia, from rowhomes and twins to single-family houses, co-ops and rentals, but Center City high-rise condominiums are the part of this city I know most deeply. When I work with a condo buyer, I help them look beyond the individual unit and understand the association, monthly fees, reserves, insurance, assessments, rules, rental and pet policies, parking and the other factors that affect both the ownership experience and future resale. This guide walks through that second layer of due diligence in the order I would walk through it with you, with the Pennsylvania statute or official source attached to each rule.

The first thing I tell every buyer: not every condo building is essentially the same. The building matters tremendously.

Condo or co-op: what you actually own

From the sidewalk, a condominium and a cooperative can look identical. The difference is in the deed, or the lack of one.

Pennsylvania’s Uniform Condominium Act defines a condominium as real estate, portions of which are designated for separate ownership and the remainder for common ownership solely by the owners of those portions. Each unit, together with its common element interest, is a separate parcel of real estate, and each unit is separately taxed and assessed (68 Pa.C.S. 3103 and 3105). You receive a deed to your unit and share the lobby, roof, hallways and systems with your neighbors through the unit owners’ association.

Pennsylvania’s Real Estate Cooperative Act defines a cooperative as real estate owned by an association, each of whose members is entitled, by virtue of that ownership interest, to exclusive possession of a unit. What you buy is a “cooperative interest”: an ownership interest in the association coupled with a possessory interest in a unit under a proprietary lease (68 Pa.C.S. 4103).

Condo vs co-op in Philadelphia at a glance

Why the difference matters for financing

With either form of ownership, you are not the only thing a lender underwrites. Fannie Mae’s Selling Guide requires the lender to determine that a condo, co-op or planned unit development project meets Fannie Mae’s eligibility requirements before delivering a loan on a unit in it, and names the risks it is looking for: the project’s financial stability, its condition and marketability, project-level litigation, restrictions such as rights of first refusal, and inadequate insurance. The building’s health is part of your loan approval.

Co-ops add a second layer. Fannie Mae describes a co-op share loan as one secured by the borrower’s shares in the co-op housing corporation and an assignment of the proprietary lease, and buys them only where the borrower occupies the home as a principal residence or second home. Not every lender offers share loans, and whether a co-op requires the association’s approval of a buyer is set by its own documents, so ask for the approval process and timeline early. That is one more reason I recommend becoming pre-approved before seriously shopping, and I am happy to connect you with trusted local mortgage professionals.

The Pennsylvania resale certificate

The most useful document in a Philadelphia condo purchase is the resale certificate. Under 68 Pa.C.S. 3407(a), an owner reselling a unit must furnish the purchaser, before the contract is signed or otherwise before conveyance, a copy of the declaration (other than the plats and plans), the bylaws, the rules and regulations, and a certificate covering seventeen categories of information. Section 3102 applies this section to condominiums created before the Act as well, so it matters whether the building is new or decades old.

The association does the heavy lifting: under 3407(b) it must furnish the certificate within ten days after the owner’s request. A purchaser is not liable for any unpaid assessment or fee greater than the amount in the association’s certificate (3407(c)), and the purchase contract is voidable by the purchaser until the certificate has been provided and for five days thereafter, or until conveyance, whichever first occurs (3407(d)).

Documents to request and what each tells you

Reading the association like an owner

Budget and reserves

Put the operating budget next to the latest income and expense statement. A budget is a plan; the statement shows what happened. If the association regularly overspends, the difference comes from reserves, a fee increase or a special assessment.

Then compare the reserves with the capital expenditures proposed for the next three fiscal years. Large buildings eventually replace roofs, elevators, facade elements, windows, garage decks and mechanical systems, and a reserve that looks healthy on its own can look thin next to a facade project. Ask whether the association has a reserve study, when it was last updated, and whether the budget follows it.

Special assessments

The certificate states any special assessment currently due from the seller. It cannot tell you about one the board is only discussing, which is why I read recent minutes for words like facade, elevator, garage, roof, insurance renewal and loan. A planned, funded project is not a reason to walk away. An unfunded one you did not know about is a reason to renegotiate or reconsider.

Insurance: the master policy and your own policy

Under 68 Pa.C.S. 3312, the association must maintain, to the extent reasonably available, property insurance on the common elements and on the units exclusive of improvements and betterments installed in units, plus general liability coverage. A unit owner may insure the unit for all losses, including those not covered because of a deductible, and the portion of a loss not covered because of the association’s deductible is levied by the executive board under the Act’s assessment rules.

That leaves three questions: what the master policy covers inside the unit, how large its deductible is and how it is allocated after a claim, and what your own unit owner’s policy, commonly called an HO-6, must include to fill the gap. Get quotes before your review window closes.

Management and litigation

Ask whether the building is professionally managed or self-managed, and by whom. Litigation is not automatically a problem, since associations sue contractors and collect from delinquent owners, but a suit against the association is on Fannie Mae’s list of project risks and can touch your future assessments.

Condo fees: what they cover and how to compare buildings

Monthly fees vary widely from building to building, and a low fee is not automatically better value. The fee pays for what the budget pays for, so compare budgets, not just totals:

• Which utilities are included, and which are metered to each unit?
• Which services are included: front desk, doorman, on-site management, maintenance staff, fitness room, pool, roof deck?
• Is parking in the fee, billed separately, or not available?
• How much goes to reserves each year, and is it keeping pace with the capital plan?
• How has the fee changed over recent years, and why?

A building with a higher fee and a well-funded reserve can be a better long-term purchase than one with a lower fee and an assessment on the horizon. I also think about which amenities residents actually use and which simply look good in photographs, because you pay for both. For whether fees are deductible, see the questions at the end of this guide.

Rules to ask about before you fall in love with a unit

Every building writes its own rules, and they change. Never assume a building’s current policy. Put these questions to the association in writing:

• Pets: Are pets permitted, and are there limits on number, size or type? Where will you walk your dog?
• Leasing: May owners lease? Is there a minimum term, a waiting period, a cap on leased units or an approval process? This matters even if you plan to live there, because it affects who can buy from you later.
• Renovations: What approvals are needed for flooring, kitchens, bathrooms or moving plumbing? Are there flooring sound requirements, working hours or contractor insurance rules?
• Move-ins: Is there a fee, an elevator reservation or a deposit?
• Pending changes: Is the board considering amendments to the declaration or rules?

Parking: deeded, separately deeded, assigned, licensed or leased

Parking should never be assumed. Depending on the building, a space may be deeded, separately deeded, assigned, licensed or leased, and each transfers differently.

Also ask where your guests will park. I help my buyers verify exactly what is included, in the documents, before the offer is written.

Taxes: how a Philadelphia condo is assessed

Because each condo unit is separately taxed and assessed under 68 Pa.C.S. 3105, each unit carries its own assessment and Real Estate Tax bill, which you can look up on the City’s Property Search. I review the current taxes, assessed value and any applicable abatement or exemption with every buyer.

The City of Philadelphia states that if you own your Philadelphia home and live in it as your primary residence, you are eligible for the Homestead Exemption, which reduces the property’s assessed value by $100,000. Once an application is accepted you do not reapply unless your deed changes. The final deadline is December 1 each year, and the City recommends October 1 for the benefit to appear on your bill.

Philadelphia closing costs, including the realty transfer tax, are covered in my guide to buying a home in Philadelphia.

Why two units in one building sell for different prices

Philadelphia is a block by block market and, for condominiums, a building by building market. It goes further: two condos in the same building can offer completely different experiences depending on the floor, exposure, views, layout, balcony, parking, monthly fees and even the building systems.

• Floor and exposure: Floor level and the direction a unit faces decide its light, noise and summer heat, and a higher floor is only worth more if the light and view make it so.
• Views: A park or river view is different from a view across a lot that could be built on. Ask what is next door.
• Layout: Two units with the same square footage can live very differently. Price per square foot misleads; in Philadelphia, value is much more nuanced.
• Outdoor space: Whether a balcony or terrace is part of the unit or a limited common element affects value and maintenance responsibility.
• Systems: The age of a unit’s heating and cooling equipment, windows and plumbing can differ within one building.
• Parking and fees: A unit that conveys a deeded space is a different product, and the declaration may allocate different fees to similar units.

This is where local knowledge matters. I know which Center City condo buildings feel like true communities and which are more anonymous, and what buyers notice in person that they overlook online. If Waterfront Square is on your list, read my guide to living at Waterfront Square.

Where the high-rise and condo stock sits

• Rittenhouse: High-rise and mid-rise residential buildings, pre-war apartment houses and converted brownstones around Rittenhouse Square. See Rittenhouse and Graduate Hospital.
• Logan Square: Residential towers and converted buildings along and near the Benjamin Franklin Parkway. See Logan Square and Fitler Square.
• Washington Square West and Society Hill: High-rise buildings alongside historic rowhomes, with Washington Square as a green anchor. See Society Hill and Washington Square.
• Old City and the Delaware River waterfront: Converted loft and warehouse buildings in Old City and residential buildings along the river, including Waterfront Square. See Old City and the Delaware River.

Tell me how you want to live (can you walk to your favorite restaurant, how easy is it to reach 30th Street Station or the airport, can you walk along the river in the morning) and I can narrow the list to buildings worth a closer look.

Think about resale from the first showing

Even if you plan to stay for many years, I look at a condo through the eyes of both today’s buyer and a future buyer. A well-run association, a funded reserve, a workable rental policy, clear parking rights, a good layout and natural light protect both your daily life and your resale. When you eventually sell, buyers will examine the same fees, reserves, assessments, insurance, rules and recent sales in the building that you are examining now. My guide to selling a home in Philadelphia covers preparing those documents before buyers ask.

Frequently asked questions