1. How much is in the Reserve Fund?
Make sure the reserve fund for the condo building is proportionate to the age of the building. A general rule of thumb is to invest in condos that have a reserve fund of 10% of their operating budget.
2. Who is the Developer?
CMHC advises reviewing paperwork such as a disclosure statement, technical audit and documents regarding the condo bylaws.
3. Research the Company’s Financial and Legal History.
Check out the financial and legal history of the developer or contact your local BBB and local condo boards to see if ther are any lawsuits between condo owners and the developer.
4. Who Manages the Condo Association?
Many condo associations are choosing registered firms to manage budgets, building maintenance and homewoner complaints.
5. What Does the Master Insurance Cover?
Master insurance policies can be either “bare walls-in” or “all-in” coverage. Ask what areas of the building are “common-areas” and therefore covered with Master Insurance.