12 Apr Considering Condo Living? What You Should Know
Considering Condo Living? What You Should Know
A condominium offers a lower maintenance lifestyle and often many amenities such as swimming pools, gyms, security, social activities and others, depending on the type of condo. Here are some important factors from the Ontario Condominium Authority’s Buyers Guide to consider before buying a condo, whether a resale or pre-construction condo.
When you purchase a condo you have shared ownership in its structure and you become part of a condo community that involves community decision making. You are responsible for paying your share of the common expenses and complying with the condo corporation’s governing documents. You will also be able to participate in condo governance by, for example, voting for directors, reviewing the corporation’s records, attending owners’ meetings, and using the amenities and more.
Condo corporation’s governing documents provide an opportunity to learn important information about the condo corporation you are considering. The information found in a condo corporation’s governing documents such as the declaration, the by-laws and the rules may be key to your enjoyment of your unit and could have an impact on your buying decision.
The status of the reserve fund and age of the building. A reserve fund is required to ensure that the condo corporation has enough money to pay for major repairs and replacement of the common elements and assets of the condo corporation. It is important to note if the building will require any significant repair, maintenance or updating with its age and the plan for addressing those issues. You should consider the health of the reserve fund, when the last reserve fund study was completed and review what is your responsibility to repair and maintain.
Condo Fees. This is the monthly amount unit owners pay toward the operation of the condo corporation (e.g., security costs, cleaning costs, etc.) and contributions to the reserve fund. Knowing what is included in the condo fees, i.e. exterior maintenance, window & door replacement, roof replacement, water for your unit, specific utilities, snow plowing, amenities, etc. is key. It is important to incorporate common expense fees into your budget when considering purchasing a condo. Common expense fees may change over time depending on the needs of the condo corporation.
The units and common elements. The size, layout, and boundaries of the unit and the common elements (i.e. pool, gym, parking garage, grounds, elevators, etc.) generally will not change. You may wish to consider what is your responsibility to repair and maintain.
Amenities. Consider that, in general, all the owners must pay for the common elements, regardless of whether you use them or not.
Condominium Management. Condo corporations, while not required to, may decide to hire a condo manager or a condo management company to oversee the condo corporation’s day-to-day operations. Condo managers act on behalf of the condo corporation and are directed by the board of directors.
Requesting a status certificate from the condo corporation. It is important to be aware of any litigation against the condo corporation or that the condo corporation is a party to, as owners generally will be responsible for the costs. If the condo corporation cannot cover the costs with the operating fund, a special assessment (an extra one-time charge which could be spread out over several years and is added to an owner’s common expenses), may be required. Requesting the status certificate, declaration, rules & by-laws, and their review by you/your lawyer can be a condition in your offer to purchase. Some sellers may have already requested the status certificate and accompanying documents and have them available for you and/or your lawyer to review.
Click here for the the Ontario Condominium Authority’s Buyers Guide to learn more about how condos work, the role of a condo corporation and your rights and responsibilities as an owner.
If you are considering purchasing a condo in the Ottawa area we are here to guide you through all of the different stages. We are always happy to assist and answer any real estate questions you have!
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