Condo diligence

[BarryMcGuire]

Well, it's ACRE weekend and Russell Westcott and I have cooked up a great diligence presentation. Here's why diligence is important.



A member is looking at a condo and had the condominium documents reviewed. That review revealed that NEITHER the management company nor the condominium corporation were aware that the building has what are known as 'post tension cables'. These are cables, encased in grease to prevent rust and corrosion, buried in the concrete that are supposed to stabilize the building. If not properly maintained, it can be a giant special assessment. What kind of maintenance is the management company doing when they don't even know they have post tension cables? Huge potential problem.



Do you think this REIN member is glad they're doing their diligence?

 

[GaryMcGowan]

Good one Barry!

 

[DonCampbell]

Barry, your tips and insights have saved me TENS of THOUSANDS over the years... I can't even begin to add up the positive savings you have made for the thousands of Members you have assisted.



That, sir, is why you are so well respected in the legal and real estate community. Integrity, insights and that little twinkle of fun you bring to the legal side of real estate!



Thank you from all of us.





D

 

[PeterM]

Hi Barry,



How did the member actually find out about the post tension cables? Was there a mention somewhere in the condo docs? Or was it found during inspection? For condos, there is usually a statement on the existence of post tension cables in the Info sheet or Estoppel prepared by the management company. If it was documented somewhere, then it is pretty sad that the management company didn't know about it (although based on my experience it doesn't really surprise me!).



Peter