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Check the numbers!

Is the Building financially sound?   Among the most important things to consider is the financial stability of the building.  Is the building able to meet its current operating expenses without assessments?  When is the mortgage due?  What building improvements are on the table and how will they be paid for?  Is there enough in the reserve fund to meet unexpected expenses?  These are just some of the questions you should be asking and a review of the buildings financial statements and history of assessments, maintenance and or common charges should give you some guidance on the building’s financial health and your expected costs in the future.  Think of this as buying into a business.  You want to make sure that it can pay its current bills and has enough to meet some surprise costs along the way.  Remember that you, along with all the other unit owners, will have to pay more by way of assessments or increased common charges or maintenance if the building doesn’t have available funds or the capacity to borrow funds to meet its obligations

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