Annual special assessments
A small condo in Agincourt hired a very small property management
company. It was a part of a group of small companies that the owner was
promoting as a "one stop for all your real estate needs".
There was a real estate arm and a renovations company along with the
management company. However, this property was the only condo that this
management company had under contract.
This condo has problems. The building was in serious financial
difficulties. There were bricks falling off the exterior walls. Over
the years, contractors patched the walls with different coloured bricks
and at least once, they used the wrong size bricks.
There were numerous water leaks, broken concrete steps and a crumbling concrete in the underground garage.
The board raised the monthly maintenance expenses and two years in a
row had special assessments. The owners were not too thrilled.
However, each year the board managed to get re-elected.
Possible termination
In the spring of 2015, the board called an information meeting to discuss the possibility of terminating the condo corporation.
The pitch was that the corporation needed millions to repair the three
buildings and that would be better to sell the assets to a developer
who would demolish the structures and build new large mixed use condos
on the land. The owners would evacuate their units, rent for a couple
of years and then be given new units in the new condo corporation.
The management company wanted the owners to approve just over $100,000 to conduct a land survey.
This was a not well thought out plan. Where would the owners find
suitable rental accommodation? Was there a developer who showed
interest in this enterprise or was this just a proposal?
3rd Special Assessment
Since few owners showed any interest in terminating their condo
corporation, the property manager announced a special assessment of
$2,000 a unit, to be paid in three equal monthly amounts.
Since this was the third special assessment in three years and there
was no sign that repairs were being done, the owners wondered where
their money was going? Some owners didn't pay the first payment when it
was due.
Requistion
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Why the requistion failed
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