Buyers should carefully research condo 'community'

What struck me the most is how serious many condominium directors take their responsibilities as directors of their corporation and that there are many differences in how condominium board duties are carried out. In addition, many are making use of technology to keep their own members up to date on all condominium business and also provide a way for potential buyers to learn more about their building.

In many ways, a condominium is like a small town and the unit owners share a sense of community. All decisions made will impact every owner individually and it is important that they stay as informed as possible.

David Crawford, a director of Metropolitan Toronto Condominium Corp. Number 573, at 135 George St. S. in Toronto, advised me that unit owners as well as potential buyers can view and stay informed about condominium matters by just accessing the corporation's website at www.mtcc573.ca.

This website is also available to potential buyers who may be interested in the building and gives a lot of information not only about the building itself, but also about the surrounding community.

Peter Curley, who has been a condominium board director for more than 20 years, tells me "I believe that boards should be hands-on, and not leave every decision to the property management company."

As an example, his board required the property manager deliver all material to be considered at any monthly meeting on the Friday afternoon prior to each meeting, so that the material could be properly reviewed beforehand. This resulted in more productive meetings. The board prepares monthly newsletter updates for all the unit owners.

Real estate salespeople and lawyers have long complained about the process in obtaining a status certificate from a condominium corporation or property management company.

Most condominium deals are conditional for just a few days, to give time to the buyer and his or her lawyer to review and be satisfied with the contents of a status certificate. This may involve hundreds of pages that have to be copied as well as courier fees to pick up and deliver the package to the offices of real estate salespeople and lawyers.

I am advised by Darryl Deen of D-tech Consultants that his firm has developed a solution called Conduit, which can be accessed by anyone at www.statuscertificate.com.

So far, they have more than 1,000 condominium corporations registered and interested buyers, lawyers and real estate salespeople can obtain any status certificate, including all condominium documents, within minutes by just making an online application and paying a fee. They can then share the information on their computer with their clients in real time, saving paper as well as courier fees.

All information, including whether a unit is up to date on condominium fees, is current.

I was also advised by more than one condominium director that the annual budget is approved solely by the board of directors as part of its duties although owners have the right to ask questions about the financial statements at the annual meeting.

Potential buyers should also inquire about the number of units in the building rented to tenants, as this information may not be included in your status certificate.

Renters, in general, do not take the same care of their units or the condominium property as an owner and this is useful information for potential buyers to have.

It is very important for buyers, when considering any condominium purchase, to do as much research in advance into this new community, before committing to a large financial and lifestyle commitment.

Mark Weisleder is a lawyer, author and public speaker for the real estate industry who is a regular contributor to Real Estate News. Email: mark@markweisleder.com

Read more: Review your status certificate when purchasing resale unit