Question 1

How long is the condo document review period in Washington, DC?

Accepted Answer

In the District of Columbia, condominiums are governed by the DC Condo Act.(https://code.dccouncil.gov/us/dc/council/code/titles/42/chapters/19) Under DC Code § 42–1904.11,(https://code.dccouncil.gov/us/dc/council/code/sections/42-1904.11) buyers of resale condos generally have a three-business-day right of rescission to review the condo document package.(https://www.pavanlaw.com/post/what-s-a-condo-doc-package) This period begins the day after the full package including the recoded Declaration, Bylaws, Plat and Plans (with all amendments), and resale certificate with attachments including insurance information and the annual budget is delivered. Because these are business days, weekends and federal holidays do not count toward the deadline.

For new construction purchased directly from a developer, DC Code § 42–1904.02 (https://code.dccouncil.gov/us/dc/council/code/sections/42-1904.02)provides that buyers are granted a more extensive 15-calendar-day review period to examine the Public Offering Statement (POS). Unlike resales, this 15-day window consists of calendar days, including weekends.

In both scenarios, you can cancel the contract for any reason related to the documents and receive a full refund of your earnest money deposit. Read my full guide on what exactly is included in a DC condo document package here.(https://www.pavanlaw.com/post/what-s-a-condo-doc-package)

Question 2

How long is the co-op review period in Washington, DC, and what documents must be provided?

Accepted Answer

Cooperative units in the District of Columbia are not governed by the DC Condo Act. In fact, when you own a co-op unit you don’t actually own real property at all - you own shares in a corporation and sign a Proprietary Lease giving you the exclusive right to occupy your specific unit. As such, the documents you receive and your review period is governed not by statute but by the real estate sales contract you sign. The standard contract in the area, the GCAAR contract, provides that the seller must obtain and provide the buyers with the following documents: 
 • The co-op Articles of Incorporation, Bylaws, Plats and Plans
 • The co-op approval application
 • Financial information including the annual budget and any underlying mortgage
 • A copy of the Proprietary Lease
 • Rules and regulations

The standard GCAAR contract provides a three business day review period of the co-op documents. However, because this is a contractual term rather than a statutory one, it is vital to verify that your specific contract has not shortened or waived this window. During these three business days, you have the right to cancel the contract for any reason related to the documents and receive a full return of your deposit.

Question 3

What is the difference between a condo and a co-op review in DC?

Accepted Answer

The fundamental difference lies in what you are buying. In a condo, you are purchasing real property (fee-simple ownership). In a co-op, you are purchasing personal property - shares in a corporation - which grants you a Proprietary Lease to occupy a specific unit. There are a few things that merit specific review when buying a co-op:

• Financial Scrutiny: While both a condo and a co-op review focuses on the association’s reserves and budget, a co-op review must evaluate where the co-op has an underlying mortgage or a land lease, which are uncommon for condos. For the mortgage, it’s important to understand the length of the mortgage and whether it may reset at a higher interest rate, which could trigger an increase jump in your monthly maintenance fees.
 • Board Approval: Unlike condo boards, which sometimes may have a limited right of first refusal, co-op boards usually have to approve new buyers. Some DC co-ops have implemented stricter liquidity stress tests, often requiring buyers to prove they have 12–24 months of post-closing liquidity (cash in the bank after the down payment) to weather future assessments.
 • Tax Structure: Condo owners receive an individual tax bill from the DC Office of Tax and Revenue. Co-ops are typically taxed as a single entity; your portion of the property taxes is bundled into your monthly fee. This often results in lower overall taxes for older DC co-ops compared to similar condos, but it requires a specialized legal lens to verify the allocation.
 • Rental & Use Restrictions: Co-ops are generally more restrictive than condos. While many DC condos have rental caps (e.g., 25% of units), many co-ops prohibit subletting entirely or limit it.

Question 4

What are the most common "red flags" in DC condo and co-op documents?

Accepted Answer

When reviewing DC condo and co-op documents, certain financial and legal indicators suggest a higher risk for the buyer. Key red flags include:
 • Low Capital Reserves: A major red flag is a reserve fund that covers less than 70% of the projected costs in the building's Reserve Study. In DC, many buildings were built around the turn of the last century and have significant capital needs. If these buildings have underfunded reserves, there is a higher likelihood of  special assessments to pay for projects like brick repointing, boiler replacement, domestic water riser replacement, and roof or elevator repairs.
 • Pending or Ongoing Litigation: The barrier for entry to filing a lawsuit in DC is relatively low. Any lawsuit involving the association should be examined. In addition, association lawsuits can affect whether conventional lenders will underwrite a loan for a unit in the building. 
 • Budgetary Deficits or "Too Low" Fees: Be wary of condo fees that seem unusually low. If an association doesn't generate enough money to operate and save for the future, residents can face deferred maintenance and future financial impacts.
 • Restrictive Use Policies: Bylaws may contain restrictions on pets (size/breed), smoking, or rental caps that don't align with your plans for the unit.
 • Missing Meeting Minutes: Unlike some jurisdictions, DC law does not require the inclusion of meeting minutes in every resale package. If they exist but are withheld, it may be a sign of unresolved building issues or poor management.
 • Pending Special Assessments: While not always the case, generally, a special assessment suggests that something has gone wrong somewhere - whether it is an unexpected emergency repair or a long-term failure to fund the reserves. Buyers should spend time understanding the reasons behind any special assessment and whether those reasons (such as recurring plumbing issues or structural concerns) are likely to reoccur.
For a deeper dive into these issues, you can read my full feature in UrbanTurf: Five Red Flags to Look For During Condo Document Review.(https://dc.urbanturf.com/articles/blog/five_red_flags_to_look_for_during_condo_document_review/21428)

DC Condo/Co-op Review Guide