Your Condo Due Diligence Checklist
Buying a condo is different from buying a house. You're not just buying a unit - you're buying into a community, a corporation, and a shared financial future with hundreds of strangers.
Here are twelve questions you need to ask (and get answers to) before you buy any condo.
About the Condo Corporation
1. What's the reserve fund situation? The reserve fund is the condo's savings account for major repairs. Ask:
- How much is currently in the reserve fund?
- What percentage funded is it?
- When was the last reserve fund study?
- Are there any major expenses coming up?
Red flag: A reserve fund below 50% funded, or a reserve fund study older than 3 years.
2. Have there been any special assessments in the past 5 years? Special assessments are one-time charges to owners for unexpected expenses. Ask:
- What were they for?
- How much did owners pay?
- Are any special assessments pending or planned?
Red flag: Multiple special assessments, or vague answers about future plans.
3. Are there any ongoing or pending lawsuits? Litigation can be expensive and indicates problems. Ask:
- Is the corporation suing anyone?
- Is anyone suing the corporation?
- What's the potential financial exposure?
Red flag: Active construction defect lawsuits (especially in buildings under 10 years old).
4. What's the insurance situation? Condo insurance has become expensive and complicated. Ask:
- What's the building's insurance deductible?
- Has the deductible increased recently?
- Has the corporation made any insurance claims?
Red flag: Deductibles over $100,000, or recent water damage claims.
About the Building
5. How old are the major systems? Everything has a lifespan. Ask:
- When was the roof last replaced?
- How old are the elevators?
- When were the windows installed?
- What's the condition of the parking garage?
Red flag: Original systems in buildings over 20 years old with no replacement plan.
6. What's the owner vs. renter ratio? The mix of owners and renters affects building culture and financing. Ask:
- What percentage of units are owner-occupied?
- Are there rental restrictions?
- Is the rental cap currently met?
Red flag: More than 50% rentals can affect mortgage approval and resale value.
7. Who manages the building? Property management quality makes a huge difference. Ask:
- Who's the property management company?
- How long have they managed this building?
- What's the resident satisfaction like?
Red flag: Frequent management company changes, or a self-managed building with no professional oversight.
About the Unit
8. What's included in the sale? Don't assume anything is included. Ask:
- Is the parking spot owned or leased?
- Is the locker included?
- What appliances are staying?
- Are window coverings included?
Red flag: "Leased" parking or locker can be reassigned by the corporation.
9. What renovations have been done? Condo renovations require corporation approval. Ask:
- Were any modifications done to the unit?
- Were permits and approvals obtained?
- Is there documentation of the work?
Red flag: Obvious renovations with no paperwork. You could inherit code violations.
10. What are the condo fees, and what do they include? Condo fees vary widely. Ask:
- What's the exact monthly amount?
- What utilities are included?
- What's the fee history over the past 5 years?
- Are any increases planned?
Red flag: Fees that have increased more than 5% annually, or fees that seem unusually low.
About Living There
11. What are the rules about pets, rentals, and renovations? Condo rules can be restrictive. Ask:
- What pets are allowed (size, breed, number)?
- Can I rent out my unit? With what restrictions?
- What renovations require approval?
- Are there quiet hours or other lifestyle rules?
Red flag: Rules that conflict with your lifestyle - these are hard to change.
12. What's the building culture like? This is harder to quantify but important. Ask:
- How engaged is the condo board?
- Are there community events?
- What do current residents like and dislike?
- How are disputes typically handled?
Red flag: A board that seems combative, or residents who complain about the same issues repeatedly.
How to Get These Answers
From the status certificate:
- Reserve fund information
- Special assessment history
- Litigation
- Insurance details
- Rules and restrictions
From your real estate agent:
- Owner/renter ratio
- Fee history
- Building reputation
From the listing or seller:
- What's included
- Renovation history
- Unit-specific details
From a building visit:
- Common area condition
- Building culture
- Neighbour interactions
The Bottom Line
These twelve questions aren't optional - they're essential. The status certificate will answer many of them, but not all. Do your homework before you sign anything, and don't let a competitive market pressure you into skipping due diligence.
A condo purchase is likely the biggest financial decision you'll make. Make sure you're making it with all the information you need.
