Why is it important for sellers to obtain their standard condo documentation?
As a condo seller, it’s important to be aware of the documentation you may be required to produce if an offer is received on your property. The documents are essential to know about the health of a condo corporation or complex and nearly all offers made on condo properties will be conditional upon a buyer’s review of the condo documents.
Why is it important for buyers to review condo documents?
From a buyer’s perspective, it is important to know that when you purchase a unit you are purchasing not only the living unit but shares in the condo corporation. This condo corporation is responsible for operating items like the reserve fund and could also be subject to legal proceedings. You will want to know about the physical, managerial, and financial position of the condo building. For those reasons, it is very important to review the documents. If you prefer, a professional can take care of this on your behalf. Click here to find a professional for document review.
When should sellers prepare their condo documents?
Sellers should be prepared and organized with these documents well in advance of going to market. This will make it simple to provide the documents for buyers to review upon request once an offer is received and eliminate the possibility of a delay in the process.
Where do sellers get their condo documents?
If you own a large condo building, documents can typically be requested from the management company. Some condo boards make documents available on websites like condopapers.com. Smaller condo buildings, like a fourplex or triplex, may not have all the standard documents available to you.
Typical documents include:
A statement setting out the amount of any contributions due and payable in respect of the unit
The particulars of:
any action commenced against the corporation and served on the corporation
any unsatisfied judgment or order for which the corporation is liable
any written demand made on the corporation for an amount in excess of $5,000 that, if not met, may result in an action being brought against the corporation
The particulars of, or a copy of, any subsisting management agreement
the particulars of, or a copy of, any subsisting recreational agreemen
The particulars of any post-tensioned cables located anywhere on or within the property that is included in the condominium plan
A copy of the budget of the corporation
A copy of the most recent financial statements, if any, of the corporation, including the most recent year-end and month-end statements
A copy of the bylaws of the corporation
A copy of the most recent approved and most recent draft minutes of the annual general meeting
A copy of the minutes and draft minutes of meetings of the board of directors of the corporation for not less than the past 12 months
A statement setting out the amount of the capital replacement reserve fund
A copy of the reserve fund report
A copy of the reserve fund plan
A statement setting out the amount of the monthly contribution (commonly referred to as condominium fee) and the basis on which that amount was determined
A statement setting out any structural deficiencies that the corporation has knowledge of, at the time of the request, in any of the buildings that are included in the condominium plan
A copy of any lease agreement or exclusive use agreement with respect to the possession of a portion of the common property, including a parking stall or storage space
A copy of the registered condominium plan
A copy of the condominium additional plan sheet certificate (CADS)
A copy of the insurance certificate
The amount of any homeowner association fee
A copy of any proposed special resolution awaiting a vote
A copy of any special resolution that has been passed but not yet implemented
A copy of any easement, covenants and restrictions (ECR) agreement
A copy of any other building or site report such as a building assessment report, building envelope report, geo-technical report, technical audit or performance audit