As a condo enthusiast (we’re there with you!), chances are you’ve at one point or another heard mention of the always-nebulous, ever-important “condo doc.” You might have wondered at one point: What is a condo doc? What does it do? Is “doc” an abbreviated form of “document” (hint: yes)? Knowledge amongst unit owners concerning the influential and impactful condo doc can feel sparse, despite the fact that you likely required one at some point if you’re an actual condo owner and not a renter or lessee.
Before we reveal the not so magic sauce of the whats, whys, and wherewithals of condo documents, we wanted to note right off the top that if you ever need to acquire one for your own purposes, a legislative expectation exists that you’ll be waiting 10 business days at most for your request to be turned around. Be sure to give yourself a two-week lead time when requesting condo docs so that you don’t find yourself in a tight situation.
To that point, it’s also worth mentioning that realistically, your condo management company should have your condo documents readily available online or through cloud-based platforms for ease and speed of access. It’s important to realize that even with a system like this in place, there will still be key docs that require generation each time, but this is a great way to boost the efficiency and efficacy of your Calgary or Edmonton condo doc review process.
Now, with all that out of the way…
What IS a Condo Document Review—and Why Do You Need One?
As we’d mentioned off the top, you may not quite recollect the condo document review, but most condo unit transactions include a condo doc review as part of the sale. If we’re being honest, this really should be a standard part of the process every single time a condo unit changes hands. The reason being is that a condo doc review is essentially an in-depth run-down of key corporation documents.
“What could any of that matter to me?” you might be asking. Well, these critical documents can be examined to help shine a spotlight on the condo corporation’s overall health and financial compliance. This is crucial information to have as a potential buyer because when you purchase a condo unit, you’re not just investing in a new home—you’re investing in a very literal business, a condo CORPORATION. And it’s only smart financial sense to have a solid understanding of a business’s fiscal health before you invest in it, right?
If you’re not entirely sure how to go about requesting a condo doc, this isn’t really a part of the process you need to get your hands dirty. Typically, your real estate agent will be the party to go through the rigmarole of inquiring after condo docs, tracking them down, and getting them organized for you. As for what to expect when you get those condo docs in your hands, we’re glad you asked!
What Should You Expect to Find in a Condo Doc?
Insofar as what you can look to find within your condo document, there’s a fairly standard list of typical reports and details you can look forward to reading through, including:
- Condo bylaws
- Meeting minutes
- Condo corporation financial details
- Reserve Fund Study
- Building budget
- Insurance certificates
- Any lease or exclusive-use agreements
- Recreational agreements (dependant on your building and its programs/amenities)
- Management contract/agreement
- Specific condo fee particulars
- The total amount owing on your unit
Now, some of this might seem fairly straightforward, and it might be tempting to imagine that if your prospective condo building is comfortable handing over documentation, then everything must be on the up-and-up and you don’t need to worry about it. Hold on a moment as we cannot stress enough: have an expert look through your condo document review before just assuming that everything’s hunky-dory. Work with your Realtor or bring on a lawyer specializing in real estate to spend some time walking you through the documentation so that you have a complete and comprehensive understanding of what all the information means to you in relation to your condo investment. This is likely one of the biggest single purchases you’ll make in your life—it’s worthwhile taking a moment to ensure everything is as it should be before you sign on that dotted line.
The Condo Doc Mystery: Solved
We hope that this blog has cleared some of the mystery around what exactly a condo document Doc is and why condo owners should care about them. A condo doc review is definitely not something you need to worry about during your typical day-to-day condo living, but during those times when you’re in the market for a new home, having knowledge on the subject is absolutely critical to making a sound investment.
Still have a few more questions about the ins and outs of condo docs? Need an expert to guide you through a review of this vitally important paperwork? Reach out to us at Condo Management companies edmonton today, and we’ll happy to help make sure your investment is a smart one!