Condominium documents are they what they seem?
Before conditions are removed on any purchase involving a condominium the seller must provide condominium documents, These include financial statements, meeting minutes, and an information statement that informs the buyer of any special assessments or monies owing specific to the unit in question.
As the buyer we must trust that these documents are factual and accurate, What happens if these documents are not? Who bares that responsibility, and what questions need to be asked?
Special assessments are one of the may items that are required to be disclosed within these documents. If between the time the buyer and seller agree on an offer to purchase, and removal of conditions, the property management company (the entity usually issuing the condominium documents) becomes aware of' a special assessment are they required to inform the buyer?
You would think so. In a recent situation I was involved in the buyer was not made aware of these developments. Even though the management company was contacted and asked directly about any special assessment.
What this comes down to is buyer buyer beware I would encourage all buyers ask all the questions before purchasing, even if that means asking your Realtor to call the management company to verify the information provided in the condominium documents, before removing conditions.
What we need to do as Realtors is minimize risk to which our clients are exposed, how do we do this.
Encourage our clients to ask questions, seek advise of a lawyer or any other expert that may be applicable.
Making your Real Estate needs my priority.
Dave Dry
www.davedry.ca
Licensed Realtor in the province of Alberta