The condo document review is a set of documents that create a condominium and govern condominium living. According to the residential resale condominium sales deal, a broker must supply a buyer with a list of condo documents. You may even know what is discussed in your condo documents as a seller – you may also have served on the condo team. But, as a buyer in Alberta, what do you need to know about condominium documents? If your buying deal has a condo paperwork clause, you can get these papers, which you should closely review. Hiring a condo record analysis firm to assist you to clarify what it entails may be helpful. Here’s a rundown of what should be included, as well as any pointers on what to watch for.
Condominium Bylaws
The condo’s rules are outlined in this guide. This outlines what a condo owner is allowed to do, what they are responsible for paying for, and how the condo can operate. These are extremely important. Policies about age limits, dogs, fees, and what is the duty of the owner to care for versus what is protected by the company are some of the items you can look for directly. The Condominium Property Act and Regulations govern all of the bylaws. However, each condominium building is exclusive.
Statements of Financial Position
Financial statements provide information about how effectively a condominium building or complex manages its funds. You’ll have a balance sheet that lists the company’s assets and obligations, as well as an income statement that reveals how much money is flowing in and going out. Keep track of how much money is being set aside for the future and how much is being spent on each piece. These records, along with the budget, reveal a lot of how well a condo is handled. Anything in this area is a representation of the building’s physical condition. Have your eyes peeled? Planning this budget is similar to a family budget, but it is more complex because it pertains to a whole structure. It will inform you how much money you can hope to collect from apartment dues, parking fees, and laundry revenue, as well as what the board wants to do with it. Utilities, renovations, servicing, washing, administration fees, and reserve fund donations were all visible. Profit is what you won’t find here. Condominium companies are not-for-profit entities. Anything leftover from this year’s condo spending will be saved and invested in the condo next year. Checkout condo document review.
Minutes of Meetings
There are a few different kinds of meeting minutes, but we’re more concerned with annual general meetings and routine board meeting minutes. The annual general meeting doesn’t really reveal anything about how good the condo is doing, but it does include some useful information. The board meeting minutes will keep you up to date with the grievances, problems, financial conditions, and repairs that the board is considering on a daily basis. This is one of the biggest websites and the most up-to-date material if you want to see what’s going on in a condominium. Read them closely and ask questions on something that seems to be of future interest to you. Meeting minutes demonstrate how well the board addresses problems that occur when managing the building or complex.
Certificate of Insurance
Check to see if this paper is up to date and if the procedure is satisfactory. It is illegal to own a condominium building without insurance. This is a crucial piece of information. Know more about condo document review.
Exclusive Use Agreements or Leases
This item isn’t very popular, but it’s very significant. This will inform you whether any of the common property is being rented out or whether anybody has an exclusive use arrangement on a section of the common property. This knowledge isn’t necessarily reliable, so if anything doesn’t look right, ask questions. You need to know that someone is leasing something you own because when you own an apartment, you usually own a part of the shared property in addition to your unit. Storage, parking, a corridor, a party room, or a swimming pool are all examples.
Recreational Contracts
Few condominiums have fitness facilities, which might encourage people who don’t live in the building to use the leisure area – such as an exercise room or a pool – even though they don’t live in the building. You’ll want to be aware of the laws in these regions. Are they just for condo owners’ use, or owners and visitors’ use, or can they be leased by a single owner for a party or event? Check to see how this extends to your future investment and if it would have an effect on you.
Management Contract
As a landowner, a property manager would have an impact on your life. Some administrators may charge more than others may and some management contracts may have unusual approvals and costs. I’ve seen some unusual words in management contracts that have raised red flags for me while considering buying a condo.
