Transitions-Oakville, Burlington and Mississauga Real Estate Blog

Buying a Condominium in Oakville, Mississauga or Burlington - Important Things You Need to Know About Condominium Ownership -Common Expenses and The Status Certificate.

Part One of the 'Buying a Condominium in Oakville, Mississauga or Burlington' series discussed the initial things a buyer should be aware of as they begin to think about looking at condominiums.
A link to Part One can be found at the bottom of this page.

In this article, Part Two of a three part series on things a buyer should be aware of as they begin to consider the purchase of a condominium, we will be looking at 'common expenses' and also talking about the 'status certificate', two very important aspects of condominium ownership.

• Condominium ownership involves the payment of monthly condo fees to the condominium corporation. These fees vary widely from development to development, not only in amount, but also in terms of what they cover.
  Monthly fees, also known as common expenses, are used by the condominium corporation to cover such things as maintenance of the common elements, funding the reserve account (see explanation of reserve account below) and paying for the management of the day to day operations of the building/development and the operating expenses of the condominium corporation.
  
  Monthly condo fees may also include, depending on the condominium, such things as snow removal, grass cutting, building insurance (for the exterior of the building), exterior building and grounds maintenance, water usage, utilities and television cable.
  
  Be sure to find out the exact amount of the monthly fees and what they include prior to the submission of an offer to purchase.
  
  If you are working with a REALTOR® , they will attain all of this information for you on each condominium that you are considering.
  
  You should also be aware that if you will be requiring financing for your condo purchase from a bank or mortgage company, the amount of the monthly condo fees will have an impact on how much the lender will be willing to loan you for a mortgage.
  
  If you are considering the purchase of a condo that has not yet been built or is in the process of being built, be aware that the condo fees you will be quoted may rise by up to 50% or more after your first year of ownership. Factor this into your monthly costs when you are determining how much you can afford prior to submitting an offer to purchase.
  
  
  
• One of the most important documents applicable to condominium ownership is the 'Status Certificate'. It is vital that you do not purchase a condominium prior to having your lawyer review the status certificate and go over with you in detail it's contents.
  The status certificate will cover the following very significant aspects of the condominium corporation and unit you are considering:
  
  
  1. The amount held in the 'reserve fund'.
  All condominiums are required by law to maintain a separate fund that is allocated for the payment of major repairs and replacements of the common elements of the condo corporation. These may include repair or replacement of windows, roofing, pools, parking, elevators etc.
  
  
  2. Whether or not the unit you are interested is overdue on any common expense payments.
  
  
  3. Reveals any liens against the unit you are considering.
  
  
  4. Provides you with detailed accounting of the most recent audited financial statements and budget of the condominium corporation.
  
  
  5. Indicates whether there are any special assessments or legal actions involved with the condominium corporation or with the unit.
  
  6. Includes a list of the Board Members of the condominium corporation.
  
  
  7. Whether or not there are any increases in the monthly fees being contemplated.
  
  
  8. A copy of the condo corporation's 'Declaration'. The declaration is the legal document that creates the condo corporation. In it you will find a description of the boundaries of your unit and the percentage used for calculating the specific montly expenses/fees for your unit. It will also contain any obligations that affect the use of your unit.
  
  
  9. The Bylaws of the condominium corporation. The bylaws will outline the organizational and administrative functions and duties of the Board of Directors and the Condominium Corporation. They will also provide a structure for the calling of owner's meetings and for the election of members to the Board of Directors.
  
  
  10. All condominiums have a set of 'Rules and Regulations'. These will also be included in the status certificate.
  Condo rules and regulations set out the standards of behaviour for the condo community.
  They will cover such things as the day to day use of the common elements and also of the individual units.
  Some condominiums do not allow pets or limit the type and size of pets. If this is the case, it will state so in the rules and regulations.
  There are various other stipulations that will be found in the rules and regulations and it is very important for you to review them prior to making a firm offer to purchase.

          Your REALTOR® will set out a certain amount of time (usually 10 days), in the offer to purchase, for              you and your lawyer to review the status certificate. This is set out in the form of a condition,   
          thereby allowing you to rescind your offer should you or your lawyer find something of concern when            reviewing the status certificate.

For Further Reading:

Buying a Condominium in Oakville, Mississauga or Burlington - Important Things You Need to Know - Part One.

Buying a Waterfront Condominium in Oakville.

If you are considering buying a condominium in Oakville, Mississauga or Burlington and would like a complete list of  condominiums currently available for sale that meet your needs/desires, contact Jo-Anne Smith at OakvilleAndBeyond@gmail.com or 289-837-2132.

©2009JoSmith

Buying a Condominium in Oakville, Mississauga or Burlington - Important Things You Need to Know About Condominium Ownership - Part One.

In today's real estate market, homebuyers from all age groups often consider the purchase of a condo as they begin to explore their homebuying options.

If you are amongst this diverse group of homebuyers, there are many important things you should be aware of before moving forward on the path to buying a condominium.

Enlisting the help of a knowledgeable real estate sales representative early in the process will save you an enormous amount of time and potentially problems and money.

REALTOR®s have the knowledge, skill and experience you will be thankful to have on the road to condominium ownership.
They will guide you along the path to a well-built condominium in the best location for your needs and desires and will be with you every step of the way as you realize your dream of not only moving to a place you are pleased to call home, but also in making a profitable investment for your future.

Buying a condo in Oakville, Mississauga or Burlington, similarly to buying in other locations across the continent, is quite a different process from buying a detached home or freehold property.

When buying a condo, you own the interior of your unit on your own, however the exterior of your unit and the grounds or building that it is located on or in, are considered common elements and you are only buying a share in these common elements.
The common elements, such as a pool, walkways, tennis courts, lobbies, etc are owned by the condominium corporation and you, as a condo owner in the development, own a share in the condo corporation and hence in the common elements.

Please review the following list of key points to familiarize yourself with condominium ownership:

• When you begin to consider buying a condominium, it's a good idea to carefully consider the appearance, location and nearby amenities of the building or development.
  These important factors will have a great impact on the future value of your unit and also on the quality of your day to day life while living there.
  
  
  
• Explore the common elements of the building or development and decide whether or not they are of value to you or if you will be making use of them.
  This is an important consideration as part of your monthly condo fees will be going towards the maintenance of the common elements and will determine the amount of the condo fees that you will be paying, no matter if you use the common elements or not.
  
  Common elements may include such things as pools, squash courts, gyms, parks and gardens, lobbies, parking garages and more.
  
  
  
• The age of the building or development is also an important factor to consider. Checking for the condo builder's reputation at TARION.com is an imortant step that many buyers often neglect to do before putting in an offer on a condominium unit.
  
  
  
• If you are considering older developments or buildings, it's a wise move to investigate the management and financial history of the condo corporation and also find out what kind of management the condominium has.
  Your real estate sales representative will be able to help you in exploring all of these things as you  work towards choosing the right condo for you.

If you are thinking of buying a condo in Oakville, Burlington or Mississauga, be sure to read Part Two in this series as we continue to explore the important things to know when considering condo ownership.

Other articles in this series:

The Benefits of Buying a Condominium in Burlington, Oakville or Mississauga.

©2009JoSmith