Financial Statements

Understand financial statements in Canadian real estate; why they're key for evaluating condos and investment properties before purchase.

Financial Statements

June 16, 2025


What are Financial Statements?

Financial statements are formal records of the financial performance and position of a condominium corporation or investment property, typically reviewed by buyers, lenders, or investors.

Why Financial Statements Matters in Real Estate

In Canadian real estate, financial statements help assess the fiscal health of a condo corporation or income-generating property.



Key components often include:
  • Balance sheet (assets, liabilities, reserve fund)
  • Income statement (revenue from fees vs. expenses)
  • Annual budget and variances
  • Auditor’s notes or financial disclosures



For condo buyers, strong financials suggest a well-managed building with adequate reserves. For investors, they provide a snapshot of rental income, operating costs, and profitability.



Understanding financial statements is critical for due diligence and long-term planning in property ownership.

Example of Financial Statements in Action

Before making an offer, the buyer’s agent requests the condo’s financial statements to ensure the reserve fund is sufficient for upcoming capital repairs.

Key Takeaways

  • Reveal financial health of a property or condo
  • Include income, expenses, assets, and reserves
  • Required for condo sales and financing
  • Help identify risk of special assessments
  • Reviewed by buyers and lenders

Related Terms

Additional Terms

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Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

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