Condo Financial Statements: What to Review Before Buying
What to look for in a condo association’s books before you buy.
What It Means
Every condo association produces a financial statement — usually an annual budget and, for larger associations, an audited or reviewed financial report. These documents show how much money is coming in from dues, how it’s being spent, how much is sitting in reserves, and whether the association is running a surplus or a deficit.
The 5-Minute Check
You don’t need to read 100 pages — you need these five numbers.
Jason’s Take
A buyer once told me, “I’m not reading 100 pages of financial statements.” I told them, “Give me five minutes.” We found that the building’s expenses had been increasing while reserves weren’t keeping pace. Nothing was necessarily wrong, but it changed how they viewed the purchase. They still bought a condo — just not that one.
💡 Jason’s Tip: Sometimes the most important part of buying a condo isn’t what you see during the showing. It’s what’s hidden in the paperwork.
Common Mistakes Buyers & Sellers Make
- ⚠️Skipping the financials entirely because they look intimidating.
- ⚠️Looking at a single year in isolation instead of the trend.
- ⚠️Sellers assuming clean-looking dues history means the financials are fine.
- ⚠️Not asking about pending litigation or outstanding loans.
South Florida-Specific Considerations
Since Florida’s post-Surfside reforms require reserve funding tied to SIRS results, financial statements in Miami-Dade buildings now carry information that didn’t exist in the same form a few years ago — specifically, whether reserve contributions are keeping pace with what the SIRS says they should be.
Real-World Scenario
A buyer is reviewing financials for a building with steadily rising expenses over the past three years. The budget shows reserves have stayed roughly flat over that same period. On its own, neither number is alarming — together, they suggest the building is falling further behind on funding what it will eventually need.
Costs, Timelines & Expectations
Financial statements are typically provided by the seller (or through the association) during the contract period, often as part of the condo questionnaire request. Give yourself a few days within your inspection/review period to actually get through these documents, not just the day before closing.
Frequently Asked Questions
Do I have to read the entire financial statement myself?
No — your agent can review the key figures and flag anything that needs a closer look.
What’s a red flag delinquency rate?
There’s no single cutoff, but a notably high percentage of owners behind on dues can strain the budget.
Can I request these before making an offer?
Sometimes informally, though full financials are typically provided during your contract’s due diligence period — see our Condo Questionnaires guide.
Why It Matters to Buyers
The monthly fee alone doesn’t tell the whole story — a building’s financial statements reveal the underlying health that determines whether costs stay stable or spike unexpectedly.
Related Reading
A lender will typically request these financial statements as part of the condo questionnaire process, and they’re one of the clearest ways to check a building’s fee structure and reserve health before you buy. Our milestone inspections guide and SIRS guide cover the two reports whose findings often show up in these financials. Our condo red flags guide covers other warning signs to look for, and our buyer’s guide explains where this fits in the purchase timeline.
