What to watch for in condo documents — and why these warning signs matter before you commit.
These are the most common warning signs our specialists identify in condo documents. Missing even one of these could cost you tens of thousands of dollars.
If the reserve fund study shows the fund is well below recommended levels, the condo corporation may struggle to pay for major upcoming repairs — and a special assessment could be levied against all owners, including you.
If one has been recently levied or is being discussed, you could face a significant extra cost shortly after purchasing — sometimes tens of thousands of dollars with little warning.
Legal disputes involving the condo corporation can be expensive and time-consuming. They often signal deeper management issues and can affect insurance coverage and your ability to obtain financing.
Consistent large fee increases year over year often signal that the corporation has been operating with an unrealistic budget — and the true cost of maintaining the building is only now being acknowledged.
Board minutes may reveal that necessary repairs — roofing, parkade, elevators, building envelope — have been repeatedly delayed. Deferred maintenance typically means much larger bills in the near future.
Frequent changes in property management companies or board members often indicates dysfunction, conflict, or poor governance that negatively affects quality of life in the building.
Insufficient coverage or a history of frequent claims could result in dramatically higher premiums or difficulty obtaining coverage — impacting your ongoing costs as an owner.
Bylaws that heavily restrict short-term rentals, pets, renovations, or resale can significantly limit how you use and eventually sell your unit — and can be deal-breakers for many buyers.
This is not an exhaustive list. Our specialists identify dozens of additional risk indicators in every thorough review.
Our reviewers know exactly what to look for and where to find it. Don’t risk missing something important.