Before you buy, you need to determine whether the condominium corporation is involved in any legal proceedings. Consider the following questions:
- Have any legal actions or claims been made against the corporation?
- Does the corporation current have any outstanding judgment orders resulting from previous legal proceedings?
- Have any written demands over $5,000 been made against the corporation that could result in legal proceedings being taken?
- What is the nature of the legal action or demand facing the corporation?
If the corporation is involved in legal proceedings, you should be extremely cautious about buying a unit in the development. Legal proceedings are expensive and could be a sign the corporation is in trouble financially or otherwise.
Make sure to talk to a lawyer about the potential consequences of purchasing property if the condominium corporation is facing legal action or has a significant outstanding judgment.
June 2015
