What to ask for

Wanting to examine a condominium corporation's documents can be like a thirsty alcoholic being let loose in a liquor store. There is so much there and all of it looks promising so where do you start?

Here are some ideas on what records to ask for so you will use your time wisely and you will not get bogged down hunting where there is little of value to be found.

Board meetings
I would ask to examine all the board meeting minutes since the last AGM. Often there is not much in the minutes and at some condos much of the minutes are redacted. Everyone thinks they are now working for Kim Jong-un's rocket program and everything they do is a corporation "secret".

Budget
If the board hasn't sent out a copy of the new budget at the start of the new fiscal year, then ask to examine it. A budget is an important tool to evaluate the board's competence.

Plumbing, drywall and painting invoices
You want to see if these costs are high because the building has multiple water leaks due to pin holes in the risers or standpipes that should be replaced but instead are just being patched. High plumbing, drywall and painting costs will give you a good idea of the shape the building is in.

Utility bills
I urge you to ask to examine the utility bills as the utility bills make up a very large percentage of the operating costs. The previous three months should do.

You want to see if the bills have been paid in full every month or if the condo is skipping months or just paying a portion of the monthly utility bills. The interest charges on unpaid utility bills can run into tens of thousands.


Unpaid utility bills are no joke
 
At one large condo, the administrator and property manager were not paying the monthly water bills in full so the owners were being charged $2,000 a month in late penalties.

At a Scarborough condo, the president bragged that all bills were being paid on time. Horse piss! The electrical bill hadn't been paid for the previous three months. The man was a lier.

If the water and sewage bills don't get paid, the city could have the water bills added onto the unit owners' property taxes. If the corporation is not paying its electrical bill, Toronto Hydro will wait till summer to disconnect the electricity.

Reserve Fund Study
I suggest that you look at the current Reserve Fund Study and the previous study. Ask for the full studies, not just the table of income and expenses that are listed in the back.

You want to see if major repairs that the engineers suggested be done in the prior study have been pushed out further out in the present study.

I seen one study state that expensive roof replacements and underground repairs needed to be done in 2012 and the new study pushed the work out 12 to 20 years into the future.

At a small tower of 90-units, the 2014 Reserve Fund Study stated required garage repairs should be done in two stages: Stage I in 2014 and Stage II in 2017 for a total cost of $750,000.

Instead the board had the work rescheduled in a 2016 Reserve Fund Study to have the work done in two stages: Stage I in 2018 and Stage II in 2025 for a total cost of $1.5 million. Double the price.

Inspections
Ask for the annual Fire Inspection and Sprinkler Inspection Reports for the last two years. See if there are any fire code violations. The reports may shock you.

Anything else?
You may be aware of a particular issue that you are concerned about. If so, add it to your list. Otherwise, don't ask for too much. It does no good and adds extra unnecessary costs.


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