When considering buying, selling, investing in or refinancing a Condominium Unit, it is important that you know as much as possible about
- the management
- financial condition and
- physical condition and
- overall health of the Condominium Corporation.
In recent news reports there are numerous stories about poor construction on Condominium sites and the financial hardships put on the condominium owners to deal with these problems.
In order to lessen the risk of buying a poorly managed or constructed condominium, the prospective buyer should request a Document Review as a condition of purchase, and when refinancing a Condominium Unit, the mortgage lender should request a full Document Review before approving financing of the Unit.
A 3rd Party Condominium Document Review is recommended along with a physical inspection of the Unit itself which should also include inspection of the common areas of the Condominium Corporation (mechanical/utility/recreational facilities). To find a qualified home inspector go to web site: http://www.cahpi.ca or ask for a referral from your Real Estate or Mortgage professional.
To better understand what Condominium Living means and what a Condominium Document Review is and how to order this very crucial report, we recommend you go to our web site: http://www.condoservicesalberta.com.
Contact Condo Services Alberta Inc. for more information:
Barbara Tomes, ACM, President
Additonal info if needed:
As an Owner, you should have received and be keeping a file with at least the following documents:
– Current Registered By-Laws of the Condominium Corporation
– Occupancy Rules & Regulations, if issued by the Board of Directors
– Annual General Meeting (AGM) Minutes (the “DRAFT” minutes from the prior year’s AGM are issued with the notice for the upcoming AGM.
– Most recent Audited / Year End Financial Statement (these are often issued with the AGM package).
– Current Insurance Certificate for the Condominium Corporation.
– Current Budget and Statement of Condominium Contributions for the current year.
– Lease agreement or exclusive use agreement with respect to the possession of a portion of the common property, including a parking stall or storage space.
– Recreational Agreement
– Homeowner Association Fee
– Current 5-Year Reserve Fund Plan.