Condo Ownership = Shares in a Non-Profit Corporation
Buying or selling a condo can be complicated. This is because condo ownership is not just an individual unit, but shares in a non-profit corporation. Understanding the health of that corporation requires a review of its physical, legal and financial characteristics. Unit owners are also agreeing to bylaws and rules that they have to be certain they are comfortable abiding by.
Which documents matter?
There is no one document or piece of information that stands alone to paint a picture of the condo because the documents all work together to tell the story of the organization.
- How is it managed?
- Is there enough money in the reserve fund?
- Who pays for the windows?
Answering any of these questions requires information from the financial statements, meeting minutes, bylaws, rules, reserve fund reports… you get the idea.
Which documents should I request and review?
Alberta legislation prescribes a group of documents that must be provided upon authorized written request, and these are mirrored on resale purchase contracts. Lawmakers and industry experts went through significant efforts to discern which documents could contribute meaningful information about the corporation.
What about information that is not available?
If a requested document is not missing, is it because it doesn’t exist, or was it missed in error? A brief explanation from the corporation can settle this quickly, and leave you knowing you have all the information available.
Here is an excerpt from Alberta legislation, you will find a list of documents prescribed for review: Act s.44, Reg. s.20.52:3:4.pdf
Questions? Reach out to us, we are happy to help!