Condo Association Hasn't Had Reserve Study in 14 years. Problem?

[John Lynagh]

Hi Bigger Pockets!

The Condo Association I'm looking to buy a single unit in hasn't had a Reserve/Useful Life Study done in 14 years. They provided me a summary of the last study (done in 2006) but it was not very detailed. The association has a little over 1 month's worth of income in total assets. I know that it's generally recommended for an association to do these studies every 3-5 years. I haven't been able to find anywhere online if not having one for so long is much of an issue in this situation.

I would love to hear the community's thoughts on this! 

Thanks, John

[Mike McDermott]

Warning: no study in 14 years is a definite red flag particularly for a condo. A study that old means as much as no study at all. No study also indicates that BODs aren't following best practices, are potentially violating the law (depending on the state), and possibly ignoring their governing documents (many condos require themselves to have regular studies). As a potential buyer, you are working in the dark without a current study from a qualified Reserve Study provider.