Buyers Info

Condominium Guide

What is a condominium?

It is a common misconception that the word condominium refers to a type of building; however, in order to appreciate the freedoms that a condominium lifestyle can offer, it is important to understand that condominium refers instead to a method of ownership. In a condominium, you own the interior space of your home. You and all the other condominium owners jointly own all the physical and mechanical structures, from the parking garage, hallways, lobby and elevators, to the recreational facilities and even the outside grounds. These areas are referred to as common areas and are for the shared use of all the owners. Owners may alter and decorate the interior of their condominium home to satisfy their own tastes. You may have the exclusive right to use your balcony or patio although it is considered a common element. When you buy a condominium, you accept all levels of ownership. The condominium concept can easily be applied to any form of multiple unit living arrangement. This includes not only suites in low-rise, mid-rise and high-rise buildings, but also townhouses and housing communities (often gated).

Sharing the Ownership

To accommodate the reality of shared ownership, a condominium corporation is set up to manage the maintenance, repair and finances of all common areas. A Board of Directors is elected from among the owners to oversee the corporation’s business, and the interests of all the residents in your development. The condominium is run following a specific set of bylaws and articles of incorporation. As one of the owners you will have a say in the running of the corporation, usually based on a vote commensurate with the size and location of your particular unit. You are part of a community, you can choose to get involved as a director on the Board or leave the decision making to the others. It’s your own personal choice. In selecting a condominium community, it may also be worth considering whether the other home owners have similar lifestyles, financial circumstances and age groups.

Sharing the responsibility

You are responsible for contributing your share of the common expenses for your condominium similar to the concept of paying for municipal taxes for your share of the city services. These costs are collected in the form of a monthly maintenance or condo fee and vary according to the size of the community, its facilities and the services required. The kinds if expenses can include: Security, landscaping, snow removal, underground parking and interior roadway maintenance, possibly recreation and social complex, and common-area utilities, insurance and janitorial service. They may also include the services of a property management company, In addition to these maintenance costs, a percent of your monthly assessment is deposited into a reserve fund to pay for any major repairs or replacements that may be necessary later on.

Why a Condominium?

In one word, “Freedom”. Controlling and freeing your lifestyle is perhaps the most alluring aspect of Condominiums. You may leave home for as long as you wish and know that your home is safe and secure. The building is maintained and the lawns are being cut while you’re away. Leaving the worries and difficulties of major home repairs to others. Typically a professional management company is in place to handle every aspect of common-area maintenance and repair. You don’t have to worry. You may also have access to a variety of fully equipped recreational and social facilities, that as a regular homeowner, you may not be otherwise able to afford.

Is a condominium the right lifestyle for you?

Some important questions to ask:

How big is the complex?
How big is the home?
What social and recreation facilities are offered?
What social and recreation facilities do I need?
How much are the Condo/Maintenance fees?
Who lives in the building and does it suit my lifestyle, i.e. Families, single, age, etc.
Are the rules and regulations too restrictive or not restrictive enough?
Is the corporation in sound financial health?
Is it located in the area I want to live?
Make sure your lifestyle isn’t opposite to the majority of your co-owners
If you are buying into an existing development you might want to ask current residents about such things as sound proofing, management etc.
Will you receive adequate parking space? Is parking space included in the purchase price?
Is there available storage outside the home?
Is there available automobile washing facilities?

How do I find the Condominium for me?

Condominiums are sold through the Multiple Listing Service (MLS) in the same fashion single family homes are. Your real estate agent has access to the many Condominiums available on the market today. Be certain your agent is familiar with the unique issues that arise when purchasing a condominium, i.e.
                                   
Bylaws
Declaration
Articles of Incorporation
Financial Statements
Budgets
Operating Fund
Contingency Fund
Reserve Fund
Estoppel Certificate
Condo Fees
Storage issues
Items included in Maintenance fees

Please call Stephen or Monica for an in-depth discussion of you alternatives.