A CONDO PURCHASE REQUIRES EXTRA DUE DILIGENCE

When writing an offer on a condo one should make sure that certain questions are asked and that certain declarations are made by the sellers. 

 

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WHEN AN OFFER IS PREPARED, IN ADDITION TO IT BEING CONDITIONAL TO SECURING YOUR MORTGAGE AND A BUILDING INSPECTION, THE FOLLOWING CONDITIONS SHOULD ALSO BE INCLUDED

• review of declaration of co-ownership

• review of by-laws

• review of modifications of the declaration of co-ownership and/or by-laws (if there were changes)

• review of minutes of annual meetings of co-owners (usually last two years)

• review of financial statements (usually last two years)

• obtaining document validating amount in the contingency fund

• seeing copy of certificate of location

• seller providing an appropriate document confirming that the condo fees are as stated in the listing details (state that amount in your

offer)

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ADDITIONALLY, THE FOLLOWING DECLARATIONS BY THE SELLER TO FORM PART OF YOUR OFFER

• that the building insurance policy, a shared expense among the co-owners, is in force and up to date

• that there are no arrears of unpaid monthly expenses associated with the condo

• that there are no contributions that have been voted on and due nor any such contributions expected in the future

• that an operating deficit is not expected for the current budget year

• that there are are no legal proceedings, mediation or arbitration (case currently pending or action about to be launched) against or

by the syndicate, against a third party or a co-owner

• that no judgement has been rendered against the syndicate

• that no insurance indemnities are payable to the sellers

• that the sellers have not done work in their private portion that affects the common portions

• that no by-laws that have been adopted and entered in the co-ownership registers that do not appear on the declaration

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