Before purchasing a condominium unit, review your condominium board’s meeting minutes. Consider the following things when reviewing the condo’s meeting minutes:
- Is the condominium corporation facing any serious maintenance or repair issues? If so, how is the board dealing with these issues? Keep an eye out for any issues related to the building envelope and/or a roof that’s leaking. This could be a sign of major structural issues that could cost a lot of money to fix.
- What complaints or issues have owners raised? How has the condominium board dealt with these? This is will be a good indication of how owners and the board work together to address problems.
- Is the condominium corporation facing any financial issues? If so, how is the board addressing these issues? You will also want to review the budget, financial statements, annual report, and reserve fund information.
- Has the condo had any difficulty filling board positions? This is a good indication of whether owners are actively involved and engaged in the operation and management of the condominium.
- Have there been any complaints or issues about the property manager? If so, how have the board dealt with them?
- Have there been any issues or complaints about tenants who are renting units? If so, how have the board dealt with them?
The meeting minutes will give you a good idea of how the condominium is operated and managed. It is important to consider how the condominium board deals with problems that arise – whether they are maintenance, interpersonal, or financial problems.
For a complete overview of what you need to know about condo finances before you buy, download our free publication: Before You Buy: Understanding Condo Finances.