One of the biggest considerations mulled over by new home buyers when looking into an Edmonton condo purchase revolves around the fact that when they buy a condo, they are not buying sole ownership, they’re buying into a community. This community often includes both a condo board and a property management company. With this community arise questions about its ability to make decisions about the management of what is in fact a multi-million dollar corporation. A large part of their responsibility revolves around what is called the reserve fund.
The reserve fund is basically a savings account or insurance policy (so to speak) held by the board in the event of a special expenditure that may arise in the future. Every 5 years, Edmonton condos must go through a reserve fund study. An engineer comes in to evaluate the property and presents a report to the board and property management which will indicate whether or not repairs or additions are needed either immediately or in the foreseeable future – e.g. a new roof. The challenge of this however, lies within both the Edmonton condominium board and the Edmonton property management team’s ability to fully understand the report and make budget allocation decisions based upon it. If the budget is not handled properly, individual condo owners may end up with a large, unexpected repair bill at the end.
In light of this information, potential buyers of Edmonton condos need to request an Edmonton condo package that contains a reserve fund study. However, a buyer may not be well versed in semantics of the reserve fund study, nor may the condo board or property management team be able to properly disclose everything that is in the study. As well, Edmonton realtors cannot legally advise buyers on the results of a reserve study because of liability issues but they can walk you through the framework by telling you what to look out for and provide you with the tools to proceed with due diligence.
Edmonton Properties is happy to recommend a service specializing in Edmonton Condominium Document Review and Rating Reports – Condo-Check.Com. Condo Check is a reputable company servicing Northern Alberta and the Edmonton home buyers, sellers, and lenders within.