New Jersey Home Inspector
06-05-2006, 02:46 PM
Review a copy of The Association's operating budget. A properly prepared condominium budget will include a recent reserve study. The reserve study should be based upon an on-site condition evaluation, by an independent third party, usually an engineering firm. The reserve study should provide information regarding the useful and remaining life expectancies and replacement costs of the major systems and components The Association is obligated to repair, replace, restore, or maintain.
Do a visual check to see if what is written in the study makes sense. It is common for errors to occur. Nearly all reserve studies or budgets will also include a statement of the available funds as a percentage of the necessary funds. It is also important to verify that The Association has adopted a sound funding strategy to cover future reserve expenses. Additional information should be obtained from The Association regarding their knowledge of any: construction defects or damage and pending claims or litigation involving The Association. Copies of prior board minutes and newsletters should be obtained and reviewed.
Home Inspector (http://www.accurateinspections.com/qualif.html) Michael Del Greco is President of Accurate Inspections, Inc., a New Jersey Home Inspection (http://www.NewJerseyHomeInspection.com) firm. He has performed thousands of home inspections in New Jersey. He has taught the New Jersey Home Inspector CEU & Licensing classes and help in developing questions for the National Home Inspector Exam.
Do a visual check to see if what is written in the study makes sense. It is common for errors to occur. Nearly all reserve studies or budgets will also include a statement of the available funds as a percentage of the necessary funds. It is also important to verify that The Association has adopted a sound funding strategy to cover future reserve expenses. Additional information should be obtained from The Association regarding their knowledge of any: construction defects or damage and pending claims or litigation involving The Association. Copies of prior board minutes and newsletters should be obtained and reviewed.
Home Inspector (http://www.accurateinspections.com/qualif.html) Michael Del Greco is President of Accurate Inspections, Inc., a New Jersey Home Inspection (http://www.NewJerseyHomeInspection.com) firm. He has performed thousands of home inspections in New Jersey. He has taught the New Jersey Home Inspector CEU & Licensing classes and help in developing questions for the National Home Inspector Exam.