Buying a condo requires extra due diligence

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.When an offer is prepared, in addition to it being conditional to securing your mortgage and building inspection, the following conditions should 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).

Also, ask the seller to make the following declarations:

  • 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 judgment 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
    of co-ownership.