When you’re selling your condo, you’ll likely be asked for condo docs. This request will usually be in the purchase contract and most buyers will have a condition that allows them to take some time to review these documents before agreeing to purchase the condo. This allows the buyer to make sure they are purchasing a condo unit that is in a well managed building and should let them know if there are any issues with the building or complex.
What You’ll Need
So what condominium documents is the buyer going to ask for? Well the current purchase contract that real estate agents use asks for a copy of the following:
• Condominium bylaws
• Financial statements (Year End)
• Financial statements (Month End)
• A current budget
• Copies of the condo board meeting minutes from the last 12 month period
• A copy of the latest (approved and draft) annual general meeting (AGM) minutes
• A copy of the insurance certificate
• Any lease or exclusive use agreements
• Any recreational agreement
• Any subsisting management agreement
• A reserve fund study (done within the last 5 years)
• A reserve fund plan (done within the last 5 years)
• The current reserve fund amount
• Post-tensioned cables study (if the complex has any)
• A structural deficiencies statement
• A copy of the condominium plan
• A copy of the condominium additional plan sheet certificate
• The amount of the condo fees for the unit and how they were calculated
• The Amount owing for unit
• The details of any actions commenced against the corporation and served on the corporation (if any)
• The details of any unsatisfied judgement or order for which the corporation is liable (if any)
• The details of any written demand over $5000 that if not met, may result in an action being brought against the corporation (if any)
Now some of these pieces of information are on something called the ‘Information Statement’ which the property manager can do up for you. The information statement usually has quite a lot items on it. And know not everything is always applicable to a building or complex. For example, not very many buildings in Edmonton have what are called ‘post tensioned cables’. If the building doesn’t have any, then of course you can just tell someone that it doesn’t have any – there won’t be any study to provide.
Keep All Your Paperwork
If you get copies of any condominium documents while you are living at the condo, then do keep them. If they are current, they can be provided during a sale. Otherwise, you will have to order these documents from the property manager and it can be expensive. Some property managers charge hundreds of dollars for these documents and they don’t always get them to you quickly. So I recommend sellers often try to gather these using other methods if they have access to them. If you happen to be on the condo board, then you would have a lot of these already, so again, as long as they are current, you could use them when selling your property.
Always order your condo docs when you list your property for sale. If you wait until an offer is made, you may not have time to provide them all before the deadline stipulated in the contract. If you don’t get the documents to a buyer in time, you could be jeopardizing the sale. So get it done immediately and verify that you actually get everything you need. There are provisions in the contract that a buyer can obtain them on their own and charge you for them, but it’s not worth being lazy in this department. Condo docs are extremely important. Don’t forget to have your paperwork in order in time.
If you have any questions about selling your condo, please give me a call.
by +Alan F Macdonald REALTOR® | Copyright © – gimme-shelter.com