Saturday, October 20, 2012

Lack of Legal Expenses Means... Condo Board

Condominium Board Responsibilities - The concept of LOW or non existent legal fees on financial statements is not in itself a sign of a peaceful or  "CONTENT" building.

Legal actions no matter how frivolous or without merit when residents organize to Requisition Meetings require a response and legal representation.  The Corporation simply must defend.

Actions directly against the condominium corporation are controlled by Legal Counsel and the Insurance Companies that are footing the bill.  Condo Corporations have lawsuit insurance to defend the building as well as Ontario Human Right Complaints.

One poster recently remarked that a LACK OF LEGAL EXPENDITURES [on the financial statement] indicated a harmonious building;  Legal Costs are not in way related to Special Assessments or Long Terms Repairs and Updates required from the Reserve Fund.

The lack of spending on legal matters could also mean that your condominium Board has NOT undertaken the current legislative updates;

  • Standard Unit Description - What are my standards to repair.
  • Harassment in the Workplace - Yes your condo is actually an employer.
  • Ontario Human Rights Tribunals - 

When you receive your Condominium By- Laws and Declarations you also receive a Financial Statement:  The picture, a snap shot of the corporations current financial position.  These Statement are Audited. They will provide for you some insights to the long term financial commitments that the Board is undertaking.   If your parking garage ( for 200 + cars ) needs repaving, it is a major undertaking, as would be windows or balcony repairs.

More importantly you should be asking if your [proposed] building has released the Tarion Warranty from any claims.  There are then no major structural deficiencies that will require attention.

While your unit maybe $300 - $500 thousand to buy,  the structure itself often closer to $100 Million in its entirety.

Use informed people to help you make a selection based on long term Financially Sound principals.

What do you think?

Add your comments here....  

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