Condo-Smart

Ok – so what are the documents you will you need to help you find out about the condominium corporation you are thinking of purchasing into?

The following is a list and short description of various documents that will be helpful to you. Some are standard documents (marked with *) available through the corporation. Your agent will work to see they are provided. They are listed in your MLS offer to purchase. Those listed by + are documents that will give you additional information. While not considered standard, they provide extra insight.

If you are buying privately, you will have to either order these on your own or write them into the offer to purchase. There will be a charge for them. While around $350.00 they are generally supplied by the seller. After all in addition to selling the unit, they are selling their share in the corporation. It is part of the sale.

* Standard documents
+ The great to have documents

* Bylaws. Ask for the most recent copy. Remember, these are like the house rules.

+ Policies. Ask for the current policy manual developed by the Board. If they are unable to supply a manual, be sure to ask for the policies that are important to you. You may even want to have a copy of the minutes of the meeting that outlines the policy you are particularly interested in, that way you have it in writing.

* The Registered Condominium Plan. The condominium plan outlines what is common property and what is a unit. It also tells you when the condominium was registered, how many units are in the project and what the unit factors are.

* Lease Agreements, Recreational Agreements or Exclusive Use Agreements. These may cover items such as parking stalls or storage units and access to recreational areas. Just because the current owner has a parking stall and locker doesn’t always mean you will.

+ Insurance Appraisal. You’ll want to see what the cost of replacement (less the land) really is.

* Insurance Certificate. What is their coverage? Are they fully insured?

* Monthly Board Minutes. Ask for copies for the last 3 to 6 or even 12 months. This will tell you how well the Board deals with issues and how they conduct themselves.

* AGM minutes. (Annual General Meeting) The AGM is held each year. The minutes of the meeting will often recap the year just passed and outline the year ahead.

* Year End audited financial statements, or – if not audited – the year end Balance sheet, and profit and loss statement for all accounts. Also ask for any details on written demands made upon the corporation for $5,000 or more. And ask for the particulars on any legal action or claims against the corporation.

* Most recent financials year to date. How close are they to staying within their current budget? What do they pay for? What is the cost?

* Capital Replacement Reserve Fund Study and Report. What are the recommended replacements and when should they be done? Also, ask for any structural deficiencies that the corporation has knowledge of as well as a report on any post tensioned cables located on the property.

* Current Reserve Fund Plan. This differs from the Capital Replacement Reserve Fund Study and Report. The study and report is just that – a study and report. The Plan is an outline developed by the Board as to what work gets done and when. It will shed light on how well the corporation is scheduling for future improvements and major repairs and whether they are saving to pay for future improvements.

+ Members of the Board. A list of who is on the Board and how to contact them. This may be the Form 8 registered each year by the Board following the AGM.

* Minutes of the most recent Annual General Meeting. Check the Q & A session. What questions were asked? This might tell you what issues the unit owners find important.

+ Occupancy Letter – This is a letter that outlines the percentage of owner occupied units in the complex. A higher number of unit owners in the project generally means a higher percentage of owner involvement in the corporation.

And last but not least – ask your lawyer to request an Estoppel Certificate at the time of closing. This is a legal document showing, among other things, contributions or charges outstanding on the unit you are purchasing. While not requested until close to your possession date, it is an important document. You want a clear Estoppel.

* Information on Calgary housing sales provide through Calgary Real Estate Board Co-operative Ltd. Multiple Listing www.creb.com/public/hbuyer/hb-stats-residential.htm

* For  your copy of the Alberta Condominium Property Act , call or visit The Queen’s Printers, John J. Bowlen Building 602, 620 – 7 Ave SW, Calgary (403) 297-6251 or download your copy from the website at www.qp.gov.ab.ca