Below is information taken from an actual review. These are just some of the reasons that helps a Client understand more about the purpose of full disclosure and transparency in their most important purchase of a condo.
What is expected in a Information Statement?
Includes Condo Fees, Municipal and legal and unit # including parking and storage if any, pending lawsuits, outstanding Special Assessments if any and transparency of any Structural Deficiencies. See the following example;
Recently the Information Statement we received did Not provide the Condo Fee amount, any information on structural issues Or the Present Special Assessment Information on the unit. Typically this would be provided in the information statement.
NOTE: All information statements provided by Management Companies are not all the same. If a Property Manager or Company cannot provide one we can provide you with a template for them to simply fill in the blanks and that will answer all the pertinent information needed.
What is the purpose of asking Property Managers additional questions?
Why we take the time to do this is to confirm our results in our Review and to demonstrate how well the Property Manager is connected to the project. See the following example;
Recently we reviewed a project that had information in their recent Reserve Fund Study. The RFS report suggested the building foundation and other deficiencies such as wall cracks may require an additional study by a Structural Engineer.
In reviewing the most recent meeting minutes with the Property Manager being present at the Board of Directors meetings did in fact mention the structural deficiencies, building movement requiring needed repairs and discussions of an Engineers Report that was mentioned a number of times. None of this was in the information statement.
However, when asked the Property Manager about the results/findings of the Engineering Report, and what was the scope of the work recommended? We asked to see a copy of the Engineering Report? The answer from the property manager was “I am not sure which report you are referring to”.
NOTE: These answers will give more information as to the structural issues mentioned in the minutes and Reserve Study. Also if there is more than one report it would be expected to be disclosed or provided?
When we probed further!
Upon further enquiry regarding this review the Property Manager stated that the assessment was only for replacements of windows. This however did not make sense as this Special Assessment amount was almost 2 ½ times the replacement cost and 10 years ahead of schedule?
NOTE: This answer tells us that there may have been other repairs required for this Special Assessment and may give more insight if another Special Assessment may be required?
SUMMARY: These questions are important for the Client and require proper explanations as we are all working toward a goal in providing full transparency and information of the current issues. This gives the best possible information for the Client to be well informed of any issues and or future potential ones.