Wednesday, November 9, 2016

Reasonable Doubt: the dos and don'ts of attending your first condo board AGM

Posted in
NOVEMBER 7, 2016 ...1:07 PM

Stay informed and participate in the management of your building – after all, it's likely your most valuable asset

There is no shortage of new condominium buildings in Toronto. Many of the people purchasing units in those buildings may be first-time unit owners who aren't familiar with condominium governance and procedure. To this end, first-time unit owners who have received notice of their building’s annual general meeting often ask us what to expect at the AGM, and what they should and should not be doing. My recommendations are generally along the lines of the following.
DO: Attend your AGM. Your condominium unit is likely to be your largest investment, so you should do what you can to participate in the management of that investment’s value and to stay informed about issues that might affect it.
DO: Read the information in the notice package sent to you by your condominium’s management. It will generally include items like the minutes of the previous year’s AGM (so that you can see what was discussed at the meeting), the audited financial statements for the corporation (so you can see how financially healthy the corporation is, and what the corporation’s net asset position is), and resumes for the people who are running for a spot on the board of directors (so that you can make as informed a decision as possible about who to vote for).
DON’T: Be surprised if the only people running for election to the board are either the same people who are already on the board (running for re-election) or the same people who ran unsuccessfully for the board at the last AGM. In many buildings, the pool of people who are interested in being a member of the board is relatively shallow. A good indicator that you are in one of those buildings is if, immediately upon moving in, the property manager asked you if you would be interested in running for the board.
For information on buying or selling and the current real estate market, contact me by email or call 416-322-8000.