Based on my international reserve study experience, I believe that the most important items to observe when looking for a condominium (or any common-interest property for that matter) are the financial situation of the reserve account, the annual contribution to reserves, and the occupancy percentage. For this reason, you must gain access to the financials and CC&Rs before you commit to purchasing a condominium unit. Every other aspect is secondary or preferential.
I opine that the real estate agent is doing an incredible injustice to you by withholding these key components from review. If you are set on placing an offer on this unit, include a contingency that requires an â€˜adequateâ€™ reserve account determined from a reserve study. This way if the condominium has underfunded reserves, you can walk away and avoid a potential future financial crisis. Remember, you have every right to know exactly what you plan to purchase including the physical assets, financial assets, board of directors, management, etc.
I include a link to a blog article I wrote about purchasing a condominium that has proper financials. Enjoy, and good luck with your search!
Reserve Specialist, RS
Civil Engineer, EIT
First Weber Group
Certified Distressed Property Expert