Buying a Condo in Los Angeles - Step-by-Step Guide

Homebuyers in Los Angeles may be curious how to start their search as there are many housing styles to choose from when purchasing property in the city. Plus, buyers have to wrestle with how to choose the right home to fit their lifestyle in a competitive real estate market.

From Georgian Revival mansions nestled away in Hollywood Hills to luxury condos in Beaux-Arts buildings in Downtown LA, buyers have numerous housing options. And the road to closing the deal on a condo differs slightly from buying a house in the area.

Buyers purchasing in a Pacific Palisades condo building enjoy the perks and convenience of living in a swanky pad near the shops and restaurants on Sunset Boulevard without the stress of maintaining a home.

Below the team from Prevu Real Estate compiled an essential guide for what you need to know when buying a condo in Los Angeles.

Steps to buying a condo in Los Angeles

• Definition of a condo
• Get pre-approved for a mortgage
• Make an offer on a condo in LA
• Achieve an accepted offer
• Manage seller disclosures and condo inspections
• Complete the mortgage process
• Title insurance and title report
• Prepare to close
• The critical last mile

Definition of a condo 

Locals thinking of buying a Los Angeles condo need to know how these units are defined. Condominiums, or condos for short, are a type of real estate ownership where an individual has full title to their individual apartment and an undivided interest in the shared sections of the condo building.

To maintain the upkeep of the complex and enforce the building rules, the condo association - sometimes called the homeowners association (HOA) - hires a property management company. That team organizes administrative tasks and handles day-to-day operations of the building. As such, condo unit owners have to pay HOA fees for amenities like live-in super, rooftop gardens, private gyms, and pools. 

Beyond HOA fees, condo owners must abide by the Covenants, Conditions & Restrictions (CC&Rs) of the building, limiting parking, smoking, provides guidelines for paint color, details height restrictions, and increasing or decreasing square footage. Each resident in a condo complex has voting rights and can participate in deliberations regarding expansions, repairs, additions of amenities, and how much HOA fees will rise to cover costs.

There are many condo styles, from units in Beaux-Arts buildings with sweeping views of the Santa Monica Mountains in Downtown LA or opulent oceanfront condos in Marina Del Rey. But LA buyers thinking of purchasing a condo should keep in mind that the HOA fees will vary depending on the building location. For instance, units near the water in Marina Del Rey sit on land leases, raising the HOA fees.

But regardless of the unit style and location, buyers need to show sellers they are serious about buying a condo by getting pre-approved for a mortgage. 

Get pre-approved for a mortgage 

Irrespective of housing style, all buyers serious about buying property in Los Angeles should get pre-approved for a mortgage. LA locals should compare mortgages across different lenders, shopping around to see which ones offer the best interest rates in their price range.

The process of buying a home and condo is similar in California, so getting pre-approved for a mortgage allows LA locals to show sellers they are serious about purchasing their unit. Partnering with a buyer’s agent experienced in closing deals on condos in the LA area can connect you with a mortgage provider.  

Make an offer on a condo in LA

Once a coveted Santa Monica Beach condo unit hits the market, buyers fiercely compete to outbid each other with offers above the asking price. 

But knowing how to make an informed offer requires firsthand knowledge of oceanfront condo prices, and buyers partnering with the right Los Angeles buyer’s agent delivers local expertise.

Real estate firms like Prevu Real Estate empower buyers to have greater control in their search process. The Prevu Smart Buyer Platform provides busy LA locals with the prices of condo units across Los Angeles. Buyers can track the latest listings in Downtown LA so they can scoop their dream place before the competition.

Once buyers are pre-approved and have found their ideal South Bay LA condo, buyers working with Prevu can connect to local expert agents through the Smart Buyer Platform. Buyers will have an aggregate idea of what prices sellers are asking for, but a buyer’s agent can help locals refine an offer. Prevu agents know the actual value of a beachside condominium in Santa Monica because they handle more deals a year than traditional agents. 

Prevu real estate agents help get your offer accepted, then guide buyers through the deal process when buying their ideal unit. 

Achieve an accepted offer

After submitting your bid, the seller deliberates over whether your offer meets their mark or if they should hold firm on their price. When a broker negotiates on your behalf, they leverage their experience and insider knowledge of the market to support your offer if the seller decides to make a counteroffer. 

Depending on the seller, an offer can get accepted at first sight, or the seller will stick to their guns, hoping for a higher offer. Tactics like writing a concise, heartfelt offer letter sometimes help influence a seller. Waiving contingencies and making powerful offers can also sway indecisive sellers to sign the purchase agreement, putting both parties under contract. 

Manage seller disclosures and condo inspections 

If a seller accepts your offer, this marks day zero of being under contract. Depending on the contact instructions, this is when LA residents will wire the buyer’s deposit into an escrow account. 

After wiring the buyer deposit, buyers and sellers and each party must meet requirements set in the terms and conditions of the contract. 

For instance, buyers have 17 days after an offer is accepted to complete a home inspection and make repair requests on the condo unit. Meanwhile, the condo owner will pass along the CC&R of the complex and disclose any legal issues or remodeling projects to the buyer within seven days. 

Buyer’s agents can connect buyers with home inspectors well-versed in the local laws and regulations to conduct a property investigation on the condo. The inspector evaluates the condition of the plumbing, HVAC, and electric systems of the building. The inspector checks all the faucets, light switches, and other unseen structural defects in the unit itself.

Meanwhile, your agent pours through the finances of the homeowner’s association, looking for lawsuits, open permits, or other issues. So long as everything checks out, your agent begins negotiating the terms of the contract, ensuring that the contract terms are met and includes buyer protections. 

Buyers purchase homes and condos sold in LA as-is, but they can make repair requests to the seller after the home inspection is complete. Sellers either approve the requests or decline and offer credit instead of conducting repairs. If a buyer trusts the seller and wants to speed up the process, they can waive inspections. While this is taking place, the mortgage lender will have already begun vetting the buyer and the condominium complex.

Complete the mortgage process 

While inspections are taking place, buyers can engage with their lender to begin the mortgage process once they are under contract. 

Closing a deal on a Downtown LA condo requires the employment history of a buyer, as well as the financial history of the Homeowners Association. Lenders usually send a questionnaire asking the condo association about pending litigation, the percentage difference between tenant and owner-occupied units, and even proof of insurance for common areas in the complex. 

Once satisfied, the lender provides the buyer with a commitment letter with contingencies like the buyer must keep their job for a set period of time. The process usually takes around 30 days or so from the time of acceptance, which is when buyers sign the final loan documents, they enter the final stretch of the process. 

Title insurance and title report 

Once a buyer is under contract, they need to request a title report from a licensed title company that the seller usually chooses. The title officer will search for titles on the unit, building, and land, ensuring a clean deed on the condo once the deal is closed. 

But as an added layer of protection for LA residents, the title insurance policy protects against future issues related to the title of a condo.

Prepare to close

After handling the title insurance, buyers must obtain a "clear to close" from their lender, which comes before the 30 or so days it takes to process a mortgage. 

Buyers and sellers agree on closing dates at the onset of negotiations. So after delivering a clear to close to the seller, buyers can do a final verification of the property. The escrow company handles much of the closing, and buyers and sellers will not meet throughout the transaction.  

At this point, buyers need to do final checks, making sure that the homeowner’s insurance activates on the closing date. Buyers purchasing a condo through a mortgage must make sure they have this insurance, as lenders often require it at the final closing.

The critical final mile

Once both parties have the closing documents, buyers can coordinate with their agent for a final walkthrough of the property a day or two before closing to check out in the condo. 

After this last check, buyers have to wire the final closing costs because escrow and title companies do not accept bank or cashier checks. Once these final steps are in order, the buyer can grab the keys for their new LA condominium. 

Interested in buying a condo in Los Angeles? Browse listings in your favorite neighborhood and see how you can save with Prevu's commission rebate.

Condos for sale in Downtown LA

Prevu Real Estate, Inc. is a licensed real estate broker in California, license number 02134758.