Attorney Stuart Saft, a partner at Dewey & LeBoeuf, offers this list of 20 red flags. "These are warning signs," he explains. "They just mean you have to check to see if there is something really wrong. It is the amber light telling the board to slow down and look around."

1. Need for surprise assessments
2. Taking money for building operations out of the reserve fund
3. Complaints by multiple residents about building conditions
4. Repeated leaks
5. Repeated grievance proceedings filed by the staff
6. Hostile shareholder / unit-owner meetings
7. Apartments selling below market
8. Frequent apartment turnover
9. Inability to sell apartments
10. Multiple lawsuits
11. Numerous and frequent building code violations
12. Bills not being paid on time
13. Late charges and penalties
14. Sudden appearance of old unpaid bills
15. Managing agent wants a premium for managing the building
16. Need to frequently change managing agent
17. Substantial maintenance increases
18. Accountant quits
19. Accountant can't issue financial statements
20. A picture of the building appears in the New York Post