Article
Condo Complexity: When Shared Ownership Gets Complicated
June 9, 2025
When insurance industry veteran Brian Falchuk analyzed a seemingly perfect Downers Grove condo with PropertyLens, what he found reveals the hidden complexities that catch condo buyers off guard.
Buying a condo isn't just about finding a great unit. It's about understanding a web of shared responsibilities that can make or break your investment. This week, PropertyLens teamed up with Brian Falchuk, CEO of the Property Loss Research Bureau (PLRB) and 25-year insurance veteran, to analyze what appeared to be a move-in ready condo at 1034 Braemoor Drive in Downers Grove, Illinois.
Buying a condo isn't just about finding a great unit. It's about understanding a web of shared responsibilities that can make or break your investment. This week, PropertyLens teamed up with Brian Falchuk, CEO of the Property Loss Research Bureau (PLRB) and 25-year insurance veteran, to analyze what appeared to be a move-in ready condo at 1034 Braemoor Drive in Downers Grove, Illinois.
What we discovered illustrates why condo ownership requires a fundamentally different approach than buying a single-family home.
The Property That Looked Perfect
Listed at $589,000, this three-bedroom, 2.5-bath condo boasted 2,700 square feet and appeared to have recent upgrades. The listing highlighted "new HVAC, hot water heater, washer dryer, hardwood floors and more." On paper, it seemed like the ideal move-in ready property.
The Hidden Web of Shared Responsibility
One of the most critical discoveries was the complexity of determining who's responsible for what in a condo. As PropertyLens co-founder John Siegman explained: "My first thing is who's responsible: is it the homeowner or is it the HOA? My daughter very similar situation. Her HOA is responsible for the roof and the outside structure so she has an HO6 policy versus HO3. So who's responsible and if it's the association then when were these things last taken care of?"
This distinction isn't just confusing numbering. It has real financial implications. When major systems need replacement, the difference between personal responsibility and HOA responsibility can mean thousands of dollars.
The Permit Problem: When Building-Wide Improvements Create Unit-Level Confusion
One of the most surprising findings was the absence of permits for recent work. Despite the listing stating new HVAC and water heater installations, PropertyLens found no permit records, even though permits are required in Downers Grove.
"My number two is for the things that have been upgraded that we know permits were supposed to be pulled and we have no permits, where's the permits?" Siegman noted. "Those things may have been taken care of by the association but maybe, maybe not."
This creates a unique condo challenge: permits might be pulled for the entire complex rather than individual units, making it nearly impossible to track what work was actually done on your specific unit. As PropertyLens CEO Bob Frady emphasized: "Was the work permitted? Because in some cases if it's not permitted you gotta rip it out. I've had that happen to me. It's no fun to have that happen when you sell a place."
The Roof Dilemma: Age, Damage, and Who Pays
Perhaps the most concerning finding was the roof situation. Built in 1987, the property's 38-year-old roof had endured numerous hail events, a common occurrence in the Chicago area. PropertyLens data showed damaging hail events in 2025, 2024, 2023, 2019, 2016, 2015, and 2012.
"When you see that much activity, you need to think about expected maintenance costs and repair costs. If the roof hasn't been done, you should factor in a more resilient roof because clearly there's a lot of hail activity," Frady observed.
The estimated replacement cost? $23,000. But the critical question remains: who pays?
Falchuk identified this as his top concern: "First and foremost is figuring out the situation with the roof... if and when it was replaced, if so who is responsible for that—is it me, is it the condo association, etc. If it hasn't been replaced then I need to factor that into what I'd be offering on the property."
"When you see that much activity, you need to think about expected maintenance costs and repair costs. If the roof hasn't been done, you should factor in a more resilient roof because clearly there's a lot of hail activity," Frady observed.
The estimated replacement cost? $23,000. But the critical question remains: who pays?
Falchuk identified this as his top concern: "First and foremost is figuring out the situation with the roof... if and when it was replaced, if so who is responsible for that—is it me, is it the condo association, etc. If it hasn't been replaced then I need to factor that into what I'd be offering on the property."
“When major systems need replacement, the difference between personal responsibility and HOA responsibility can mean thousands of dollars.”
The Insurance Gap That Could Hurt You
One of the most shocking discoveries was the insurance replacement cost gap. While listed at $589,000, PropertyLens estimated the replacement cost at $863,000—a staggering $274,000 difference.
"The replacement cost is three hundred thousand dollars more than the actual sale price of the condo," Frady noted. "If that place gets destroyed, you may not have enough money to rebuild it, so I would definitely get a quote before I bought the place to figure out exactly how much it's going to cost me."
One of the most shocking discoveries was the insurance replacement cost gap. While listed at $589,000, PropertyLens estimated the replacement cost at $863,000—a staggering $274,000 difference.
"The replacement cost is three hundred thousand dollars more than the actual sale price of the condo," Frady noted. "If that place gets destroyed, you may not have enough money to rebuild it, so I would definitely get a quote before I bought the place to figure out exactly how much it's going to cost me."
This isn't just a theoretical concern. As Frady explained: "If this gets destroyed in an event, you're going to be on the hook for having to replace something and your insurance isn't going to cover it, so you want to make sure you talk to your insurance agency about getting a replacement value and paying the premium for the replacement value on the house."
The Water Quality Wild Card
Beyond structural concerns, the PropertyLens report revealed water quality issues that could impact both health and finances. The area showed moderate water hardness and PFAS (forever chemicals) exposure.
Falchuk prioritized water quality as his second major concern: "It's a health risk and it's an appliance and maintenance risk so understanding the hardness and the toxicity of the water."
The implications extend beyond health. As Frady shared from personal experience: "We have moderate water hardness in a house that I used to own in California and the guy who was doing a water testing demonstration said 'the hardness of the water invalidates your warranty on your tankless water heater system.' Two weeks later, water everywhere from the tank water heater system because of all the buildup in the system."
Beyond the Purchase Price: The True Cost of Condo Ownership
PropertyLens estimated $25,000 in potential repair expenses over the first two years of ownership, including:
Driveway/asphalt replacement (past life expectancy at 38 years)
Electrical system updates ($3,000 estimated)
Potential termite treatment
Plumbing concerns (approaching 40-year life expectancy)
But in a condo, determining which costs fall to you versus the HOA can be complex and varies by property.
What This Means for Condo Buyers
The Downers Grove analysis reveals three critical areas every condo buyer must investigate:
1. Clarify responsibility boundaries before making an offer, get clarity on what the HOA covers versus what you're personally responsible for. Review HOA documents, reserve fund status, and recent assessments.
2. Verify all recent work,and don't assume recent improvements were properly permitted or professionally done. Missing permits can create expensive problems during resale.
3. Understand true replacement costs, and get an insurance quote early in the process. If replacement costs significantly exceed purchase price, factor this into your decision and ensure adequate coverage.
The Bottom Line
As Falchuk concluded: "There were no massively red flag red flags. They're largely things that cost money but you can deal with." The key is knowing about these issues upfront rather than discovering them after closing.
"Better to have that transparency," he noted, emphasizing the value of comprehensive property intelligence in making informed decisions.
