What To Expect From Condo Living
Photo by Nadine Shaabana
If you are thinking of downsizing to a condominium or are preparing to step into the real estate market for your first purchase, condominium living might be your answer. However it is important to know what to expect.
The Governing Documents of a Condominium outline the powers and responsibilities of the Condo Corporation, an owner’s rights and obligations, as well as what is and is not permitted in the condo. Standard municipal zoning applies, but condos can, and often do drill-down further into details.
Declaration. Description. What Are They?
The Declaration and the Description frame the governing documents of a Condominium Corporation.
Declaration - a written document that establishes the Condominium Corporation’s rule set. For example, it outlines the exclusive use common elements; the percentage of the common interest owned by each unit owner; and the percentage of the common expenses each unit pays. It also details unit owner and corporation obligations such as maintenance, repair, and insurance. And sometimes goes further into things like what percentage of a year, or when a unit can be rented, or the actual number of people that can occupy a suite.
Description - a specific set of measures and survey drawings that outline the perimeter boundaries of the condominium and show which parts of the property are “Units” and which are considered part of the “Common Element.” It should also describe and show Exclusive Use Common Elements.
Governing Documents - are an important part of the Condo Experience. Ask to see them, become familiar, especially with any rules that may limit your plans.
Status Certificate - is the one document that will give prospective buyers details of the financial and legal circumstances of both the condominium building and the particular unit they are interested in. A status certificate is also an important document for those lending money to finance the condominium unit.
A status certificate will include information regarding increases in the common expenses and if the building is being sued, as well any large expenditures for repairs. A buyer should pay particular attention to the reserve fund of the condominium corporation and ensure that there are sufficient funds to cover any ongoing maintenance and repair of the condominium’s major capital items.
Our Experience Is Your Advantage!
If you are considering buying or selling a home and would like advice or more information, please contact me for a no-obligation consultation.
Call Lynne Blott at 416-540-7307 or e-mail at lynne@lynneblott.com
