Thinking about buying a condo in Cambridge but unsure how the association really works? You are not alone. The way a condominium association manages money, rules, and maintenance can shape your day-to-day life, your monthly costs, and even your ability to finance and resell. In this guide, you will learn how Massachusetts condo associations operate, what to review in Cambridge buildings, and the key documents and questions to cover before you write an offer. Let’s dive in.

How Massachusetts condos are organized

Massachusetts condominiums are created by a master deed that defines units and common areas, sets ownership percentages, and allocates common expenses. Bylaws explain how the association is governed, including board elections, meetings, and voting thresholds. Rules and regulations cover daily living items like noise, pets, parking, and short-term rentals. Some associations also have articles of trust or corporate documents if organized as a trust or non-profit.

Associations are run by a board of trustees or directors elected by unit owners. Boards often hire a professional management company to handle fees, vendors, and communications. Larger communities may form committees for finance or architecture. As a buyer, review how amendments are approved, how often the board meets, and whether minutes and financials are shared with owners.

What monthly fees actually cover

Each year the association prepares a budget for operations and reserves. Operating expenses often include common area utilities, insurance, management, landscaping, cleaning, elevator service, snow removal, and vendor contracts. Reserve contributions fund long-term capital items like roofs, boilers, windows, and paving.

Confirm exactly what your monthly common charges include. In some buildings, heat or hot water are included, while electricity, internet, or cable may be separate. Parking and storage may be deeded, licensed, or billed separately. Ask for a schedule of fees so you can compare apples to apples across Cambridge buildings.

Reserves, studies, and assessments

Healthy reserves reduce the risk of surprise costs. Best practice is to maintain a reserve study that lists each major component, its expected life, and replacement cost, along with a recommended funding plan. Ask for the date of the last reserve study, the current reserve balance, the recommended balance, and the funding ratio.

Special assessments happen when reserves and operating budgets fall short. Ask for a history of assessments for the past 3 to 5 years, including the reason and total cost to owners. Review delinquency rates and the association’s collection policy, since high delinquencies can strain cash flow and raise the chance of fee increases or assessments.

Insurance also matters. The association’s master policy typically covers the building shell and common areas. You will likely need an HO-6 policy for interior finishes and personal property. Ask about the master policy deductible, exclusions such as flood, and whether the policy is all-in or has co-insurance gaps.

Financing and resale implications

Lenders evaluate the association when underwriting your mortgage. Low reserves, high delinquency rates, pending litigation, or frequent assessments can limit conventional, FHA, or VA options. Owner-occupancy ratios and the number of investor units also influence project-level approvals.

If you plan to use FHA or VA financing, confirm project eligibility early. Any major litigation, especially related to structural issues or defects, can also affect financing and resale timelines. A stable, transparent association tends to support smoother financing and stronger marketability.

Rules that affect daily life

Rules and regulations vary widely across Cambridge condos. These often include quiet hours, smoking rules, package delivery protocols, moving windows, guest parking policies, and bike storage. Renovations may require prior board approval, especially if work affects common elements such as exterior vents or windows.

Pet policies can limit the number, size, or type of pets. Service animals are protected under disability laws, and associations may request reasonable documentation. Rental policies may ban or cap rentals, require minimum lease terms, or prohibit short-term rentals. If rental income is part of your plan, confirm both the association’s rules and any applicable city requirements before you count on it.

Cambridge-specific factors to verify

Many Cambridge condos are in older buildings that were converted from rentals. Ask for permits, certificates of inspection, and any engineering or inspection reports for recent work. Confirm that prior conversion steps were handled according to local rules.

Some areas near the Charles River, Fresh Pond, or lower-lying blocks may see flood risk. Check flood zone status and how it could affect insurance and lending. Street parking often requires resident permits, so verify realistic parking options if the unit does not include a space.

Review the unit’s property tax history and check for any municipal liens or special assessments. Look into nearby development or zoning changes that could affect sunlight, views, traffic, or noise. A quick scan of city planning and permit portals gives helpful context before you commit.

Documents you should review

Request these items as early as possible. If needed, make document review a contingency in your offer.

• Master deed and all amendments
• Bylaws and current rules and regulations
• Articles of organization, trust, or corporation, plus association tax ID
• Current-year budget and most recent audited or reviewed financials
• Most recent reserve study and current reserve balance
• Minutes of board and annual meetings for the last 12 to 24 months
• Master insurance certificate with coverage limits and deductibles
• Management contract and major vendor agreements
• Owner-occupancy versus rental status summary
• History of special assessments for the past 3 to 5 years
• Schedule of monthly common charges and utilities included
• Estoppel or condo certificate for the unit to confirm balances due
• Litigation disclosures and any building inspection or engineering reports

Smart questions before you offer

Use these targeted questions to clarify risks and avoid surprises.

• What percentage of units are owner-occupied versus rented? Are any short-term rentals allowed?
• When was the last reserve study, and what percent of recommended reserves is currently funded?
• Have there been special assessments in the last five years? For what projects and how much per unit?
• Are major capital projects planned, and are assessments expected?
• What is the current delinquency rate and the collection policy for unpaid fees?
• Is the association involved in litigation or defect claims, and what is the projected exposure?
• What does the master policy cover, what is the deductible, and is flood coverage excluded?
• Are there renovation restrictions, flooring requirements, or rules for AC installation?
• What parking rights transfer with this unit, and are there waitlists or guest restrictions?
• Is the condo approved for FHA or VA financing, and are there any known lender concerns?
• Was the building converted from rental to condo with required municipal steps completed?

Red flags and smart next steps

Watch for these signals that merit deeper review or a change in strategy.

• No recent reserve study, minimal reserves, or unclear capital plan
• Frequent or large assessments without a documented remediation plan
• High or rising delinquency rates for common charges
• Pending litigation, especially involving building defects
• Rapid management turnover, developer control with limited owner input, or missing records
• Rules that conflict with your plans, such as rental caps or STR bans

Recommended steps if issues appear:

• Have a Massachusetts real estate attorney review the governing documents
• Confirm with your lender how the association’s profile affects loan options
• Request estoppel documentation to verify balances for the unit
• Obtain contracts, warranties, and reports for recent or planned capital work
• Speak with current residents and the property manager about building plans
• Check Cambridge records for permits, violations, and municipal assessments
• Verify flood zone status and related insurance needs

If disclosures are missing, litigation is material, or financing is constrained by the project profile, consider renegotiating, adding contingencies, or walking away.

Real-world examples in Cambridge

• Scenario A: Low fee, thin reserves, recent assessment. Attractive monthly costs can hide deferred maintenance. Without a current reserve study and realistic funding, another assessment may be likely.
• Scenario B: Higher fees, strong reserves, active board. Higher dues can support planned capital work and reduce risk of sudden assessments, which may help long-term stability and resale.
• Scenario C: Owner-focused building with rental limits. This can offer predictability for owner-occupiers, but it may limit rental income potential and influence investor demand.

Quick buyer checklist

• Obtain governing documents, budgets, financials, reserve study, insurance certificate, minutes, management contract, estoppel, litigation disclosures, and owner-occupancy data
• Verify fee inclusions, parking rights, storage, and amenity policies
• Confirm reserve funding level, delinquency rate, special assessment history, and planned projects
• Ask about FHA and VA eligibility if relevant to your financing
• Review Cambridge permits, inspections, tax records, flood status, and nearby development

Ready to compare buildings or pressure-test a condo’s financials and rules? Reach out for local guidance and a practical plan from offer to close. Connect with Mike Cohen for help evaluating Cambridge associations and navigating your purchase with confidence.

FAQs

What does the condo master deed do in Massachusetts?

• It creates the condominium, defines units and common elements, sets ownership percentages, and governs how common expenses and amendments are allocated and approved.

Why do reserves and reserve studies matter to buyers?

• Strong reserves and a current study lower the chance of surprise assessments and help lenders view the building as stable, which can support smoother financing and resale.

How do rental and short-term rental rules affect my plan?

• They determine whether and how you can rent, including minimum lease terms or STR bans, so confirm both association policies and any applicable city requirements before relying on rental income.

What association factors can impact my mortgage approval?

• Low reserves, high delinquencies, pending litigation, owner-occupancy levels, and frequent assessments can limit FHA, VA, or conventional financing options for the building.

What should I review for older Cambridge condo conversions?

• Confirm permits, certificates of inspection, and any engineering reports, and verify that required municipal steps for conversion were completed.

What insurance do I need if the association has a master policy?

• You will typically need an HO-6 policy for interior finishes, personal property, and liability, and you should confirm the master policy deductible and any exclusions such as flood.