Meeting minutes

What Condo Meeting Minutes Can Tell a Buyer

Meeting minutes can sometimes tell you what the financial statements can't.

The financials tell you what happened to the money. The minutes tell you what people were worried about.

Board Minutes vs AGM Minutes

They are different records and they are useful in different ways.

  • Board meeting minutes record the board's own meetings through the year. They are the operational record: quotes obtained, repairs authorised, complaints received, contracts considered, problems arising.
  • Annual general meeting minutes record the meeting of the owners. They capture the budget presented, questions owners asked, concerns raised from the floor and matters put to a vote.

The AGM minutes are where owner sentiment shows up. If owners are unhappy about something, it tends to appear there in a way it never appears in a financial statement.

What We Look For

Reading minutes is not about finding a single damning line. It is about building a picture. Subjects worth tracking:

  • Recurring maintenance
  • Water issues
  • Noise disputes
  • Insurance
  • Capital projects
  • Special assessments
  • Owner concerns
  • Security
  • Management changes
  • Legal matters
  • Budget concerns

Water is the one we pay closest attention to. Water problems are expensive, they are frequently symptomatic of something structural, and they have a habit of appearing in minutes for years before appearing in a reserve fund study.

Look for Patterns

This is the key skill, and it is the one most buyers never get told about.

One mention of a leak in a fifty-unit building is ordinary life. Buildings have leaks.

The same leak, in the same location, discussed across eight consecutive meetings, with three different contractors and no resolution, is a different piece of information entirely — and the dollar figure attached to it in the financials may still be small, because nobody has yet done the work that will actually fix it.

What you are looking for is repetition, escalation and unresolved items:

  • Does the same subject keep reappearing?
  • Is the language getting more urgent over time?
  • Do items get raised and then quietly disappear without a resolution being recorded?
  • Are quotes being obtained repeatedly without work being approved?
  • Has the board changed management, engineers or contractors more than once over the same issue?

Read More Than the Most Recent Meeting

A single set of recent minutes tells you what is on the board's desk this month. It cannot tell you whether that item has been on the desk for three years.

Read back as far as the available minutes reasonably allow. Patterns are invisible in a single meeting by definition — you need the run of them for the repetition to become obvious.

It is also worth reading the minutes against the other documents rather than on their own:

That last one is worth its own sentence. A discussion is not a levy, but an assessment under active discussion in the minutes is a cost you may be buying into that appears in no financial document yet.

What Minutes Won't Tell You

Minutes are a summary written by a person. They vary enormously in quality — some boards produce detailed records, others produce three lines a meeting.

Sparse minutes are not evidence that nothing is happening. They may just be sparse minutes. If the record is thin and the building is old, that is a reason to lean harder on the reserve fund study, the financials and, where warranted, a professional review.

Hundreds of Pages of Minutes to Get Through?

We've read a lot of them. Let's talk about what this building's minutes are actually telling you.