Examine the Books and Inspect the Reserve Fund

Check the books.

Bernie Winter, president of Condominium Support Services Inc., says that’s the first thing any buyer of a condo should do.

Many don’t, and that’s why her company and its Condo Check program are around.

Condo Check is a program designed as a home-inspection service that looks at finances rather than buildings.

It doesn’t get into the physical inspection of a condo property, but delves into the operations of the condo corporation itself through the examination of various documents.

“Buyers have to think of purchasing a condominium as more than buying a home.  They are buying a share of a corporation or as a business investment,” she says from her office on Valiant Drive NW.

The paperwork examined includes financial reports, condo reserve fund reports, the condominium plan, bylaws, structural and mechanical reports and the minutes of previous board meetings.

“What we do is inspect the operations of the corporation responsible for the physical property,” she adds.

At the end of the process, a written report summarizing the findings is handed over to the client.  As well, the client gets a copy of the condo plan and the Condominium Property Act, which is just over a year old.

Company president is one of two titles Winter holds.  The other is that of president of the Southern Alberta Chapter of the Canadian Condominium Institute.  It was established in 1982 as a non-profit organization to provide information about the condo industry to anyone interested, whether buyer, seller, real estate practitioner or lender.

“And it doesn’t matter who you are, the first thing anyone should ask for is a copy of the reserve fund study.  That’s my advice, whether buying a new, resale or converted product – ask to look at the study,” she says.

It’s the law – every condo corporation has to have a reserve fund and a fund study.

Since founding her company in 1996, Winter has seen a rapid pickup in the level of business coming through her doors.

“Business has tripled in that time.  Besides the fact that there are a lot more condos – and a lot more people buying them – there is the fact that we have more buyers who don’t know all they should know about condominiums,” she says.