I spent part of the long weekend reading strata documents along with my clients. We did this prior to viewing the property.
Why is it important to do this each time you consider buying a Strata property?
In this case we found the documents to be very revelatory & influenced our assessment of the property when we did see it, & the subsequent decision not to move forward with an offer, even though there was lots to love in this home.
What important information is in those Strata documents?:
- the usual financial information which indicates how healthy the Strata is financially
- Depreciation Report as an asset management tool. If they don't have 1 or something similar, it's a red flag as to how well the building is being maintained without that information
- Depreciation Report next steps-are they following recommendations or did they just tick off that box?
- The dynamics of the Strata. Some have many rules & Bylaws, some have very few, & most fall in the middle. What's your comfort level?
- AGM's & SGM's say a lot about overall plans & spending & how current owners vote to support them
- Insurance deductibles can vary a lot & may add unexpected costs to Buyers
- What's the dynamic with the owners? There can be a pattern of behaviour, unresolved issues, unwillingness or inability to support proper maintenance or...just the opposite in a well run & maintained building.