Document Review (Buying a Unit)

KDM Management Inc. Condominium Document Analysts review the facts and information found in the Condominium documents received. Our quick and easy to understand report gives the status of the common area conditions and if these are in line with the dollars saved to do major replacements in current and future years. Potential buyers will learn more about the corporation versus owner responsibilities and be able to make informed decisions about their purchase. Follow up questions are anticipated and welcome.

The Condominium Document Review Report requires approximately 4 to 8 business days to process. “Business days” refers to our regular office hours Monday to Friday 8:30 am – 4:30 pm excluding holidays. Reports are emailed when completed.

Why should I have a Condo Document Review in Alberta?
This may be the single most important step to buying your condo. Since condominium ownership means owning a part of a larger corporation (often valued in the millions), it’s imperative that you understand what it is that you are buying a part of. Knowing what your rights and responsibilities are, what physical property concerns there may be and what potential financial risks may be present or upcoming. Here’s some key areas to review and understand about Condo Management:

1. Understanding the Corporation’s Financial Health
   1. Financial Statements: the review of the corporation’s income, expenses and overall position will give insight to see if it is well run from a financial perspective. Is there enough income to support the current operating and reserve expenses required to maintain the property?
   2. Budget: this will show what is projected for the current or next year. This may indicate the need for a change to the current contributions (condo fees).
   3. Reserve Fund Study: this study outlines the physical status of the building(s) and other improvements that the Corporation is required to maintain. It outlines the effective remaining life span of those components and provides a financial report to co-incide help project necessary funds and timing of those expenditures for the next 25 years. It is important to understand the relationship between this document and the reserve bank account that the corporation has in order to understand if it is properly funded. If not, there may be a need for a special levy on the Owners.
2. General Operations
   1. Meeting minutes: both the Board meeting minutes, and the Annual General Meeting (AGM) minutes are a must read to understand how the corporation is handling it’s day to day needs.
   2. Engineering Reports (and others if available): if existing, these will provide information on the status and severity of common property issues (if any).
   3. Bylaws: this is the most important document to review as it will provide a lot of information with respect to what is/isn’t allowed. This is where you will find information on pet restrictions, age restrictions, renovations, parking etc.
3. Other important documents:
   1. Information Statement: This will provide a snapshot of what the condo is currently dealing with from the above referenced engineering reports, any current or pending special levies and any pending lawsuits. All of which can impact the overall value of the condo.
   2. Insurance Certificate: you must confirm that the corporation has coverage and then know what coverage you need to acquire for your own contents/deductibles etc.

A professional specializing in Condo Management can help you navigate this process with expertise. Their training allows them to evaluate the corporation’s overall financial and physical health, ensuring you are aware of potential risks and making informed decisions. Whether you are in the early stages of considering a purchase or finalizing an offer, a thorough Condo Document review in Alberta is indispensable for protecting your investment.