How Boards Can Leave You in the Dark and How to Get the Truth

When a board tells you, “everything’s fine,” it’s tempting to believe them, especially when a deal is moving quickly. After all, who would know better than the people running the building?

But in today’s regulatory climate, that assumption is dangerous. We’ve worked with numerous agents and brokers who trusted the board’s word, only to discover mid-escrow that the Milestone Inspection hadn’t been completed, the SIRS was outdated, or the building wasn’t eligible for reserve deferral. By the time the truth came out, the buyer had lost confidence, the lender had imposed conditions, and the deal was hanging by a thread.

The reality is simple: boards don’t always know what’s required, and they’re not legally obligated to explain everything to you. If you don’t ask the right questions—or get independent verification—you may not find out what you needed to know until it’s too late.

Why Boards May Not Have (or Share) the Whole Story

Condo boards are made up of volunteers, not engineers or lawyers. Many people don’t fully understand the laws themselves, especially given the rapid changes in the rules over the last two years. They may assume they’re compliant simply because they’ve scheduled an inspection, or because “someone on the board said it was handled.”

Sometimes boards even believe they’re eligible for reserve deferral because they’re “planning” to finish the Milestone soon, even though the law only allows deferral if the inspection was completed on time.

And even when boards are aware of deficiencies, they often don’t volunteer that information unless asked directly. After all, acknowledging unfunded repairs or missed deadlines can lower perceived property value, and no board wants that on their watch.

What Happens When You Rely on the Board Alone

We’ve seen agents who accepted the board’s word at face value, only to discover:

• The Milestone Inspection was scheduled but never completed.
• The SIRS was performed years ago, before the law changed, and doesn’t meet current requirements.
• Reserve accounts were grossly underfunded because the building was never eligible to defer contributions.
• Notices of required repairs had already been issued by the city, but weren’t disclosed in time.

Each of these scenarios has resulted in delayed closings, lender denials, buyer withdrawals, and, in some cases, litigation.

How to Get the Truth

When you bring PES in early, you eliminate the guesswork. We work directly with agents and brokers to review the building’s documentation, verify that inspections were done properly and on time, and explain what the findings actually mean for your deal.

We don’t rely on what the board says. We rely on what the law and the reports actually show—so you can make informed decisions, protect your client, and keep the deal moving forward.

The board’s word is not documentation. Always trust, but verify.