When you buy a condo, your offer normally includes a condition that lets you review the condo corporation’s documents before you commit. This is your chance to find problems a home inspection won’t show, because the inspector looks at your unit, not the roof, the parkade or the building’s bank account.
The documents
| Document | What to look for |
|---|---|
| Estoppel certificate | The unit’s current fee, whether the seller owes anything, and any special assessments or legal action involving the corporation. |
| Bylaws | Rules on pets, renting the unit out, short-term rentals, parking, flooring, renovations and what owners must maintain themselves. |
| Budget and financial statements | Where the fee goes, whether the corporation ran a deficit, and how much goes to the reserve fund each year. |
| Reserve fund study and plan | The major parts of the building (roof, elevators, boiler, windows, parkade, balconies), when each is expected to need replacing, and whether the savings plan will cover it. |
| Board and owner meeting minutes | Recurring complaints, repairs being discussed, disputes, insurance claims and talk of fee increases or special assessments. Read at least the last year or two. |
| Insurance certificate | What the corporation’s policy covers and the deductible, so you can buy the right contents and improvements coverage. |
| Condominium plan | Which parking stall and storage locker go with the unit, and whether they’re titled or assigned. |
| Management agreement | Who manages the building and how to reach them. |
Red flags
- A special assessment that has been approved or is being discussed.
- A reserve fund well below what the reserve fund study recommends.
- Water leaks, parkade membrane repairs, balcony or window problems that keep coming up in the minutes.
- Elevator or boiler replacements coming due without the money set aside.
- Lawsuits involving the corporation, or a building with a high insurance deductible after past claims.
- Bylaws that rule out something you need, such as a dog or renting the unit later.
- A high share of rented units, if you’re looking for an owner-occupied building.
Getting help
You can read the documents yourself, but many buyers hire a condo document review service that summarizes them in a few pages. Either way, give yourself enough days in the condition to finish the review and ask questions.
If you’re looking at a condo on this site and want help with the documents, get in touch.