Evaluating the integrity of a condominium corporation is often arbitrary by nature. There is no absolute formula. Here's a perfect example of why this is true.
We listed a unit in a boutique condo building a few years ago. There were 12 units, therefore 12 voting members in total. Most of the owners had owned from day 1. There had been few sales in this building.
We received an offer and it was conditional on the buyer "receiving and evaluating the status certificate". Formerly called an estoppel certificate, this document contains the detailed workings of the corporation. That would be the financial statements, the engineering reports, the rules and regulations and so on. Everything you need to know about the operation of the complex.
When the condo board of directors was approached to provide this document, which they were compelled to do by law, they had to scramble to assemble the proper paper work. It wasn't something they had done very often in the past. This was done in conjunction with their property management company. They then sent us the package of documents and we immediately forwarded it to the buyer's lawyer. We soon received a phone call from that lawyer informing us the document was incomplete.
To make a long story short, the buyer grew suspicious, worried that this was indicative of how the corporation has been run. He withdrew his offer.
If he had been less circumspect, he might have looked deeper to discover that this was a very well run condo corporation and that this unit was everything he thought it to be, and more.
The status certificate was incomplete because the condo board, made up of busy professionals, had delayed finalizing the financial statements because they hadn't been able to get enough members for quorum so the minutes and financials could be approved. That's it! Nothing sinister going on.