Condo Document Review
When you purchasing a condo, you are buying into a business. You want a nice condo, but you also want to buy into a well run and financially healthy condo corporation. During your condo purchase, you will have an opportunity to review the condo documents. They outline the budget, financial statements, and other details of the condo corporation.
These documents can be pretty overwhelming and meaningless if you don’t look at them often. Lawyers can be hired to review them, but their hourly fees can be a barrier, and since it isnt their specialty they usually dont have easy to read summary reports.
There is an affordable solution for buyers who would like a thorough review and feedback on the condo documents. Condo document review companies can be hired to review and provide a summary of the condo documents.
What Is A Condo Document Review Company?
A condo document review company reviews the documents given from a seller to a buyer that give background on the condominium corporation that runs the building. The review company checks to see that you receive all necessary documents and analyze the information to give details such as:
Recent special assessments (lump sum fund requests from the condo corporation to all owners)
Reserve Fund analysis to determine if they are saving enough for future maintenance needs
Governance of the condominium corporation
Financial standing of the condominium and comparison with industry averages
Confirmation of the condominium fee and how it ties in with their budget
Parking and pet policies
Why Have a Condo Document Review Complete?
I have had many clients tell me they haven’t read the condo documents provided, or if they did, they werent sure what it all meant. These documents are key, as they provide the insight into what you can expect as an owner in the corporation.
Here are some of the many reasons why a review can be beneficial:
1. Avoid special assessment surprises. These are lump sum requests of owners to pay for costs that the corporations savings cant cover. They can be significant. By reviewing the planned maintenance and the current reserve fund, a condo document review can indicate if a special assessment is anticipated.
2. Make sure you have been given the right documents. Documents provided may be outdated or missing important information. You want to make sure nothing has been held back and you are reviewing the most current information. Without knowing what you should receive, you may not realize that something is missing. Condo document review companies know exactly what should be provided and can tell you what is missing.
3. Be informed before you lose money. You want to know if your condo has issues up front, so you can still back out of the transaction and not lose your deposit. Lenders have the lawyer review condo documents just prior to closing. If they report that something is unfavorable, the lender can pull it’s financing. At this point, you would lose your deposit and be at risk of other costs for non-completion of your purchase contract.
If you have written your offer condition to satisfactory review of condo documents, you can still walk away without losing your deposit should they reveal something unfavorable.
As condo’s become an increasing percentage of purchases, we expect condo document review services to grow. Buyers recognize the importance of understanding condominium documents, and why having an expert review them now can save money and prevent stress later.
If youd like contact details for a reputable condo document review company, please contact Eva neufeld, Your Edmotnon Mortgage Broker at (780) 244-0505