Six Steps to Minimize Your Exposure to Unexpected Expenses
- When purchasing a condo, review the status certificate carefully as it contains representations about whether the Condo reserve fund is sufficient to cover anticipated expenses.
- In addition, have a lawyer review the Status Certificate and explain to you in detail the representations that have been made and whether there are gaps in the information provided.
- Find out who is managing the condominium complex and speak to them about whether they know of any expected potential major expenses for unit owners.
- Speak to the other unit owners or Condo Board Members (not the Vendor who is more likely to sing the praises of the property) and see how satisfied they are with building operations and whether there are serious financial issues looming.
- Be particularly cautious when you are looking at a condominium unit in a complex which is self-managed. You want to ensure that the self-managing owners are bringing the same level of professionalism to their management arrangements as you would expect from a qualified professional property manager.
- After you become a unit owner, attend all owners’ meetings and critically review information provided by the condo board and its property manager.
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