On written request, a condominium corporation is required to provide a statement outlining any structural deficiencies or problems the condominium corporation has knowledge of (at the time of the request) in any of the buildings included in the condominium plan.
Review this statement in conjunction with the reserve fund report and plan to see how these deficiencies will need to be addressed in the future and the potential costs of dealing with them. How will these costs be covered? Is there enough money in the reserve fund or will there need to be a special assessment or increasing condominium contributions?
You should also note any deficiencies mentioned in the statement that are not included in the reserve fund report or plan. Since reserve fund studies only need to be conducted every five years, there may be new problems that have come up since the last study.
Talk to your lawyer or real estate agent about the structural deficiencies listed and the potential risks of buying the property. Consider hiring a home inspector or engineer to help you assess the benefits and risks of the property before you buy.
June 2015
