The financial well being of the condominium corporation is an important consideration.

Buying into a condominium corporation that is insufficiently funded to operate and maintain common elements is a risky proposition.

Low condominium fees may make one condominium more appealing than others, but it may be a sign that the condominium corporation is ill prepared to fund major repairs and renewal projects. As a result, the condition of the condominium property can deteriorate or you may be faced with substantial charges from the condominium to cover repair costs as they occur.

Fortunately there are ways to determine the financial status of the condominium based on the documentation that the condominium corporation is obliged to keep, such as the annual operating budgets and end-of-year financial statements. For resale condominiums, check the status certificate. For new condominiums review the disclosure statement.

An important part of the operating budget is the reserve or contingency fund.

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