Newsletters

We asked Gemini to Compare an AI / Hybrid Review to a Condo First Review report

Here is the exchange in full.

1. Building Memory & Historical Depth

• Condo First Review: Having reviewed specific Edmonton-area complexes dozens of times (sometimes 50+ times), bringing institutional memory. Condo First Review can spot multi-year trends — or a board's pattern of underfunding reserves — that doesn't appear in document packages.
• AI / Hybrid Model: An AI model only knows the files uploaded in the current session. Unless a provider feeds it historical document packages for that exact building, the AI treats the property as a blank slate.

2. Risk Assessment & Legal / Market Nuance

• Condo First Review: A human reviewer with 45+ years of combined local experience understands local market norms. Condo First Review reads between the lines of meeting minutes to identify subtle operational risks.
• AI / Hybrid Model: AI excels at keyword extraction, summarizing long text, and quickly flagging explicit terms (like pet restrictions or stated special assessment amounts). However, it struggles with context — it reads what is literally on the page and cannot evaluate whether a board's proposed budget aligns with real-world repair costs.

3. Professional Liability & Accountability

• Condo First Review: As a formal, established review company, Condo First Review stands behind their reports with professional liability coverage and professional accountability.
• AI / Hybrid Model: Standalone AI carries no legal liability, carries no Errors & Omissions (E&O) insurance, and includes explicit disclaimers that output must be independently verified. A hybrid service (AI + human editor) bridges part of this gap, but the liability resting on the final sign-off varies significantly by provider.

4. Speed & Cost

• AI / Hybrid Model: This is where AI wins. Automated or AI-assisted tools can process 500 pages of PDFs in seconds or minutes, often at a lower price point.
• Condo First Review: Thorough human review takes time — typically 24 to 48 hours depending on turnaround options — and comes at standard professional service pricing.

Not all document reviews are the same.

Here is more information about our "Full Review" Report

• CFR has completed 90%+ reports on Condo Corporations in Edmonton — some buildings have been reviewed as many as 50+ times, all adding to a better understanding of each building and where it stands in its evaluations and future expected ongoing financial performance of how well the condo corporation has been run. By having the historical and institutional memory of a single complex reviewed 50+ times, Condo First Review stands behind their evaluations, comparing whether it meets minimum standard and whether the reserve study is reasonable and sufficiently funded.
• The report explains the difference between SA vs. Loans when funds are borrowed by the corporation, and how each alternately adds additional payments plus interest to condo fees over an amortized period — whether that may be a hidden cost or added separately to the monthly condo fee.
• The report also provides a detailed section on the meaning of a shortfall in funds, or Special Assessments or Loans, if required.
• The report includes a complete 5-year forecast on what to expect regarding additional costs, increases, etc.
• Each report comes with a questionnaire for added information from management or the board, to better inform the buyer — and management responses that may potentially change the outcome of the report. Clients can come back anytime with more questions and advice after purchase.
• CFR advises what the real cost of a rushed, information-lacking 24-hour turnaround is for the sake of speed — it's about understanding the importance of having all pertinent information first, otherwise the consequences can cost thousands, and it must be completed with due diligence and competent service.
• To avoid lost time and delays, Condo First Review advises emailing all available documents to our administrator as soon as possible — you'll be advised of any missing or required updates as a complimentary service, at no cost, before we begin.

Condo First Review has over 45+ years combined experience — built on decades of local Alberta market experience, multi-decade tracking of specific buildings, and deep contextual risk analysis, backed by the human expertise of our highly skilled professional consultants and administrative staff.

We asked AI to compare the AI/Hybrid model to Condo First Review.

While AI and hybrid tools are changing how data is extracted, a deeply established specialist service offers advantages that purely technology-driven solutions cannot replicate on their own. It comes down to human historical expertise versus raw processing speed — the difference between basic data extraction and true expert analysis.

AI / Hybrid Model — "Limited / Automated": Ideal for quick keyword searches, basic rules verification, or high-level text summaries, but limited by its lack of building history, inability to read subtle operational nuances, and zero legal liability.

Condo First Review — "Full / Comprehensive": Built on decades of local Alberta market experience, multi-decade tracking of specific buildings, and deep contextual risk analysis — backed by human expertise and professional accountability.

AI Comparison Breakdown

Feature	Condo First Review (Experienced Specialist)	AI / Hybrid Model
Primary Strength	Deep building history & human market context	Unmatched speed & instant data extraction
Historical Knowledge	High — tracks complex history over years/decades	Low — only analyzes uploaded files
Contextual Analysis	High — reads between the lines of board minutes	Moderate to low — literal text parsing
Liability / Insurance	Yes — professional accountability	No — requires independent verification
Turnaround Time	Standard (2–4 business days)	Seconds to minutes

The Verdict — For a buyer making a major real estate investment, Condo First Review offers deep historical context and accountability that an AI model cannot recreate on its own. An AI or hybrid model is best used as a fast, preliminary screening tool, but an experienced local specialist remains the superior choice for identifying hidden, long-term risks specific to a building.

Hawaii News Letter October 2023

Buying a Condo can be a buyer's largest purchase that can come with concerns about their level of risk and therefore, will need to be well informed to be able to move forward with peace of mind.

"Buyers Concerns" what they should know.

• Are there any ongoing issues?
• Are there any Special Assessments or Loans? What is the purpose?
• Can they be paid before buying? If not, then how can it be resolved?
• Will there be any more upcoming Special Assessments or Loans?
• Will there be more increases in Fees? How much? When? Why?

The Report outlines the facts and financial obligations into an easy-to-read format that will uncover details to make a confident decision that may be resolved before the buy.

Thats what we do!

Hawaii Condos "are not all the same"

When you are buying a Condo, you are also buying into a Corporation and you will inherit all its financial responsibilities.

This can be a buyer's largest purchase that also comes with concerns about their level of risk in buying into a Corporation.

What are some of the "Buyers Concerns"?

• Are there any ongoing Issues?
• Are there any Special Assessments or Loans? What is the purpose?
• Can they be paid out? If not, then how can it be resolved?
• Will there be any more upcoming Special Assessments or Loans?
• Will there be more increases in Fees? How much? When? Why?

Answers to these questions and more are included in our reports that will provide information to enable the buyers to move forward with "peace of mind".

For more information
Call Carol direct 1-855-920-5552 or
VISIT OUR WEBSITE At www.condofirstreview.com.

Special Assessment versus Loan Payment in Hawaii

What Leads to Special Assessments and Loans?

These are to pay for large capital expenses. (e.g. Pipe replacement projects, fire safety, spalling etc.) that have been overlooked or deferred fo a number years.

What are the differences in choosing the Special Assessment or Loan?

• The Special Assessment is a one-time payment for the capital expense. The existing owner has had enjoyment of home ownership without paying for the deferred expenses but doing so now.
• The Loan is the other option for owners who may not be able to payout the amount of the assessment but are able to make long term payments for a number of years.

The "current practice" appears that owners/sellers are forwarding the responsibility of the balance of the loan and now expect the buyer to take over their loan payments. Typically, this is "not accepted in ordinary transactions without renegotiation".

What is wrong with the "current practice"?

• A buyer may unknowingly be taking over the "extra expense of loan payments" thereby overpaying for the condo.
• In comparison there may be owners/sellers in the same building that have paid the "Special Assessment" and are now selling. "having the loan paid out in advance would save thousands of dollars for the buyer"! Is this fair for the buyer who may not know this information?

How can this be resolved?

• The usual method in resolving the issue for the buyer is to negotiate the balance of the Loan Payments by adjusting the purchase price.
• This represents ba fair balance for the buyer in completing the sale and this is on of the recommended methods outlined in the Condo First Review Report.

Note: Currently there are a number of projects in Hawaii that leave Loan Payments included in the Maintenance Fees. This method may be misleading for buyers by not knowing what the maintenance fees are.

The best method is to separate the maintenance fees from the loan payments. This demonstrates transparency and informs the buyers on what they are buying into and what may be expected in the future.

Typically, the long term loans do raise the possibility of another Special Assessment/Loan coming before the first one is paid out.

What is a "SIUD" for a Condominium Corporation? — Alberta

"The SIUD is 'as built' description of unit contents and replacement covered by the Corporation's insurance, including standard fixtures and finishings ...without taking into account any upgrades that have been made by the Owner".

The SIUD must be registered with Land Titles www.spin.gov.ab.ca. Any time that the SIUD changes, the insurance provider and all Unit Owners must be notified.

Standard Insurable Unit Description known as SIUD

As of January 1, 2020, Condominium Corporations are required to provide a Standard Insurable Unit Description SIUD to their insurance provider and all Unit Owners.

The SIUD should contain information that describes the unit property that the Corporation expects its insurer to rebuild or replace following an insurable loss and include at a minimum, floor coverings, wall coverings and ceiling coverings, lighting fixtures, plumbing fixtures, natural gas, cabinets and counter tops, non-chattel appliances.

If a Condominium's developer has provided an SIUD then the Corporation must use that as their SIUD.

If a Corporation does not have the developer's SIUD, then it will have to create one and may adopt an SIUD in one of three ways: either through a board resolution, an ordinary resolution, or a special resolution. It must present it at the next Annual General Meeting for ratification or amendment by an ordinary resolution.

The unit Owner's personal possessions, or any upgrades made to the unit above and beyond what is listed in the SIUD, are not covered by the Corporation's insurance.

For more information Call Carol
Direct: 780-920-5552
Email: carol@condofirstreview.com

Now Is The Time! — Alberta

Put your buyer at ease when purchasing their condo! It's all about feeling comfortable and knowing what to expect!

Your buyer wants to know!

• Are condo fees increasing? How much?
• Are there any Special Assessments or Loans?
• Are there more coming?

The documents can be misunderstood and overwhelming! We have the answers and more!

Have your client be "well informed and confident"

For more info call Carol 780-920-5552 or visit our website www.condofirstreview.com "click" Alberta

Now Is The Time! — Hawaii

Put your buyer at ease when purchasing their condo! It's all about feeling comfortable and knowing what to expect!

Your buyer wants to know!

• Are the maintenance fees increasing? How much?
• Are there any assessments or loans?
• Are there more coming?

The documents can be misunderstood and overwhelming! We have the answers and more!

Have your client be well informed and confident

Only $399 plus tax — This is all that we do!

Call Carol Direct at 1-855-920-5552
email: info@condofirstreview.com

Why Do I Need to Review the Documents! — Alberta

Reviewing condo documents is like having a home inspection. The difference is that you are reviewing the corporation financial status.

A big mistake is to judge a condo by the amount that is in reserve fund and the amount of monthly fees. The most important question is how much of the amount of the condo fee is going into the reserve fund for future capital expenses? This is where the problems usually start.

Have they deferred or completed work ahead or taken funds out for operating expenses rather than for reserve fund expenses and no plan to pay it back? This all can give the impression that it is "poorly managed".

The reserve fund is a moving target so when it is "low" it could mean that they are ahead of schedule but on the other hand when the fund is "high" a buyer may think it's okay, but it actually could be "underfunded" because of deferred expenses that the fund was unable to pay for.

This goes against what most people understand about reserve funds. It takes a trained eye to look at the documents and ask important questions from the management company that may provide more information about our findings.

However, the management companies are not the decision makers as some may think but are the facilitators in getting some answers to our questions.

Getting answers to these questions is important for the buyer find out if the board is aware of these issues and if they have a plan to get it back on track if necessary. This all can add comfort for the buyer.

Having a review will put in perspective the corporation financial status and will give the buyer time to renegotiate if required and save the buyer from receiving future potential assessments that they may not have known about.

New Regulations beginning January 01, 2020 regarding the Condominium Property Act

What will be the cost of condo documents?

According to the new regulations the cost is .25 cents per page eg. (RFStudy-hard copy) or $10 per document eg. (minutes). Based on orders for a full set of 12 months (number of meetings may vary) of Board meetings minutes including the cost of the information statement*. The total is expected to range from $300 to $350 for a rush order.

NOTE: These costs do not include the estoppel certificate that is required by the lawyer at closing for an additional cost of $200 or rush fee $300.

ADDITIONAL NOTE: Condo First Review Ltd. requires the Condominium Plan Sheet (CAD) $10 plus a copy of the plan $2 to complete a review. These items can be purchased at SPIN 2. (Registered Bylaws are also available for additional $10).

More info about the condo documents new regulations

• Information Statement* - The Corporation is to establish a consolidated Information statement (as outlined in the purchase contract) to be available within 3 days of request (cost $100 + rush fee if required).
• Written request of other documents re: (section 44 of the Act) remain at 10 days. Rush fees apply.
• Draft AGM minutes - Must be provided to owners within 60 days after the AGM.
• Annual Budget – Ensure Owners have annual budget at the start of the fiscal year, regardless of when AGM takes place.

Owners will be responsible for Corporation insurance deductibles

Based on the updated January 1, 2020 regulations. Condo Corporations can pass bylaws requiring owners to purchase if at fault deductible insurance policy for up to $50,000. This means a Special Assessment can be assessed to a single Owner if at fault or divided between all the Owners whichever the case may be.

NOTE: If the Corporation has made number of previous claims their deductible and premiums may rise substantially. Therefore, it is to be expected the increases in Corporations deductible insurance premiums will be passed on to the Owners and may include an increase in condo fees.

More about Special Assessment deductible insurance coverage.

This Special Assessment deductible insurance could be added to or part of the Owner(s) contents insurance policy. It is recommended that the buyer contact the insurer to purchase this additional insurance to meet the Corporations amount if required.

NOTE: If the buyer is to rent the unit it is advisable to purchase loss of income insurance eg. (if the tenant moves out of the unit damaged by flood). Also request the tenant to provide a copy of their coverage of content insurance.

ADDITIONAL NOTE: It may also be advisable to purchase Title Insurance coverage for default of any financial information that was owing on the unit and was not disclosed in the estoppel certificate.

Case Study — Alberta

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.

How to Find Out if There is Titled Parking — Alberta

To Start:

• Order a Copy of Title from www.spin.gov.ab.ca
• When you have the Title Number (at top right corner of the page), click titles and registered documents
• click title number
• enter the Title Number +1 (example: (799 242 855 +1)
• If there is Titled Parking....REPEAT
• click titles and registered documents
• click title number
• enter the Title Number +2 and so on until no more titles show.

ADDITIONAL NOTES: Typically the following information is not included when ordering condominium documents from the management companies or from self managed condominiums. www.spin.gov.ab.ca

These additional documents are required for a document review. will have this information to complete the document package.

The Review requires the corporation (condominium sheet) known as the CAD. It looks like a title with registration of changes to the bylaws etc. (Spin cost is $10.00).

Also, The Review requires the SURVEY PLAN. The plan shows the unit factor of each unit. (Spin cost is $2.00)

If you have received the BYLAWS in your condo package that do have the 9 digit number, may be using the appendix BYLAWS provided in the Condominium Property Act.

However, if the CAD states there are REGISTERED BYLAWS showing a 9 digit number, that confirms registration. Use the 9 digit number seen in the CAD to download. (Spin Cost $10.00)

What is the right amount in the Reserve Fund? Alberta

• A fund with a large amount can mean there are deferred repairs or expenses and possibly more costs on the way that can cause the Reserve to be underfunded?
• On the other hand a small amount can mean there up to date and right on track?

These are just a couple of the reasons that can come into play on finding the right balance of the Reserve Fund.

The Reserve Fund is constantly fluctuating based on Capital Expenses versus Reserve Fund Plan requirements for specific times and needs to be calculated to compare if the fund is at the right amount.

At CondoFirstReview this is where we start!

• Before we begin the entire process as there are many other factors that are considered in analyzing the purchase for the buyer.

What is the right amount in the Reserve Fund? Hawaii

• A fund with a large amount can mean there are deferred repairs or expenses and possibly more costs on the way that can cause the Reserve to be underfunded?
• On the other hand a small amount can mean there up to date and right on track?

These are just a couple of the reasons that can come into play on finding the right balance of the Reserve Fund.

The Reserve Fund is constantly fluctuating based on Capital Expenses versus Reserve Fund Plan requirements for specific times and needs to be calculated to compare if the fund is at the right amount.

At CondoFirstReview this is where we start!

• Before we begin the entire process as there are many other factors that are considered in analyzing the purchase for the buyer.

What are the main causes of a Special Assessment? Hawaii

What are the main causes of a Special Assessment?

• Under contributing to Reserve Fund
• Replacing components ahead of schedule
• Overspending of Capital Expenses
• Using funds that are not part of the Cash Flow Plan

How can Special Assessments be avoided?

• A 10% contingency fund in the operating account can be an asset for unexpected and preventive maintenance for eg. (exterior envelope or parkade repairs or legal fees etc.)

Who will be responsible for the payment of the Special Assessment?

• The present owner is and a notice by the Condo/Hoa Association will be in the disclosure statement. However this does not include any "Future Potential Assessments" based on "Shortfall of Funds".

Who will be responsible for any "shortfall of funds" in the Reserve Fund?

• The Buyer will be unless there is a negotiation prior to the sale. A written Review by a professional Condo/Hoa Document Review company who specializes in this area will provide the needed info.

Will there be another Special Assessment?

• The probability will be there if the above steps are not followed according to the Reserve Plan.

Are all Condo/Hoa's operated the same?

• This depends on the skill of Condo/Hoa Board of Directors of the Association. The Association is operated by the owners who may or may not have the experience to make the important Corporate financial decisions eg.( increasing Hoa Fees and or Assessments when needed) but rather decide in how it affects them a personal financial level. From our experience this is a common issue.

Who is responsible for all the Condo/Hoa Association financial decisions? Is it the Management Company or the Association?

• The Management Company is only under contract to enforce the decisions made by the Association.

Single Family Versus Condominium — Alberta

Comparing the monthly costs of an average 1000-1200 sq ft /1975+ — Average Prices Based on Edmonton (mls stats) for 2017

	Single Family Bungalow (average price $328,940)	Condominium Townhome (average price $203,000)
Property Tax (0.8%)	$219	$135
Condo Fee	nil	$300 (Based on average)
Water	$30	Included in Condo Fee
Gas	$80	$80
Power	$90	$90
Home Insurance	$77 (includes contents + Exterior)	Contents Insurance $20 (Fee includes Exterior)
Exterior Maint	$120 (40% of Condo Fee)	Included in (40% of Condo Fee)
Total	$616	$625

Comparing the available Funds for "future" exterior repair or replacement

The Condominium is a "maintenance free home with a built in savings plan" for future Capital expenses as Roof, Siding etc. A Condo Document Review will outline the adequacy of the Reserve Fund "saving plan" for any issues that can be resolved prior to the sale.

The Single Family property will not have the built in "savings plan" for future repairs and replacements. A property home inspection will outline the balance of life expectancy of roof, windows, siding etc. and the estimated "extra out of pocket cost" for replacement at the time of sale.

What are the main causes of a Special Assessment? — Alberta

What are the main causes of a Special Assessment?

• Under contributing to Reserve Fund
• Replacing components ahead of schedule
• Overspending of Capital Expenses
• Using funds that are not part of the Cash Flow Plan

How can Special Assessments be avoided?

• A 10% contingency fund in the operating account can be an asset for unexpected and preventive maintenance for envelope or parkade leaks or post tension cable repairs or legal fees etc.

Who will be responsible for the payment of the Special Assessment?

• The present owner is and a notice is provided by the Condo Board or in the information statement. However this does not include any "Future Potential Assessments" based on "Shortfall of Funds".

Who will be responsible for any "shortfall of funds" in the Reserve Fund when the Condo is sold?

• The Buyer will be unless there is a negotiation prior to the sale. A written Review by a professional condominium document review company who specializes in this area will provide the needed info.

Will there be another Special Assessment?

• The probability will be there if the above steps are not followed according to the Reserve Plan.

Are all Condos Run the same?

• Depends on the skill of Condo Board of Directors. (Our experience finds that up to 35%-40% do not follow the mandated Condominium Property Act including the Reserve Fund Study & Plan.)

Who is responsible for all the Condo Corporations financial decisions? Is it the Management Company or the Condo Board?

• The Condo Board! The Management Company is only under contract to the Corporation and enforce the decisions made by the Condo Board of Directors.

For any questions, just call Carol direct at 780-920-5552 or visit our "New" Website at www.condofirstreview.com.