Consumer protection laws are stronger for buyers of San Diego condos than they are for single-family residents. Most states have very strict laws governing the sale of condos. A full statement must be presented to you, the buyer, before the closing. It lists rules and regulations and describes the common areas. If you have questions about the financial stability of a condo community, it is not difficult to conduct your own investigation. All documents must be filed with the state government. These documents give you the name of the financial institutions involved in the condo. A few telephone calls will tell you whether or not the condo is in good fiscal health.

In particular, look in condo documents for a contingency fund for emergency expenses and a reserve fund for future improvements. A portion of your maintenance fee should be contributing to these funds. When you read the financial statement and when you interview the various owners, ask if there have been any recent special assessments and what they have been. You may also want to ask the board and the management company if any major repairs are being considered, and how much they will cost. Is there money being held in reserve for them? How much will they assess each owner for this new expense?

Some San Diego condos have been used as tax shelters, as investment opportunities for wealthy foreigners or as corporate alternatives to hotel suites. Before buying in a new condo building, find out how many units are being purchased by investors. Why? Owners are the best neighbors. If the building has more than 50 percent investor ownership, that means half your neighbors will not be owners. Investors are not as caring as owners. Finally, make sure before closing, if you are buying a pre-owned condo, that you are not assuming a seller's unpaid assessment. That is like renting a hotel room and inheriting the previous occupant's towels.

SAN DIEGO CONDOS AND WHO'S IN CHARGE?

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