Requirements Applicable to All Properties in a Condo or PUD Project

All mortgages secured by units in condo or PUD projects must comply with the following:

• requirements specific to the project review method used to determine that project’s eligibility;

• property eligibility requirements (described in Property Eligibility);

• priority of common expense assessments (described below);

• when an appraisal of the property is obtained, it must meet all applicable appraisal requirements (described in Appraisal Requirements); and

• insurance requirements (described in Insurance, including all applicable provisions Liability and Fidelity/Crime Insurance Requirements for Project Developments).

Notwithstanding any provisions to the contrary in the Guide, which do not require the lender to represent or warrant compliance with Fannie Mae project legal document requirements, the condo or PUD project legal documents must evidence compliance with the above priority of common expense assessment requirements.