Buying a Condo FAQ's
Before You Buy:
- How might my condo fees increase in the second fiscal year of the condominium corporation?
- Are there any deferred condo costs and will this result in a fee increase to condo owners? (e.g., will the condominium corporation have to buy an amenities unit like a recreation centre where costs don’t kick in until the 2nd fiscal year?
- Do the condo fees seem comparable to other buildings of the same size and with similar amenities?
- Are all utilities for the unit included in the maintenance fees? (if they are not, they will be an additional expense that you will need to budget for)
- Is the reserve fund contribution for the 1st year only at 10% of the corporation’s budget for the 1st fiscal year? (this is the bare minimum. It also means the reserve fund contribution may have to be increased fairly quickly in the 2nd fiscal year. This could affect your condo fees.)
- How many units does the developer intend to own and lease? (at owners’ meetings, an owner gets one vote for each unit that he or she owns) .
- Are there any restrictions for owners looking to rent their units? (some corporations may have some restrictions on renting condo units).
- Did the builder put in place a standard unit by-law and an insurance deductible charge-back by-law? (they may spell out how the condo corporation’s insurance works when there is damage to your unit, to other units or the common elements that originate from your unit).
- Is the budget in a deficit or a surplus? (it is important to know the financial health of the corporation to help assess what your condo fees will be)
- Has the budget increased in the past few years?
- Are the budget increases due to things other than inflation or utility costs?
- What are the reasons for any budget increases? (past budget increases may help you see if more future increases are likely to happen).
- Are there plans to increase condo fees during the current fiscal year?
- Does the corporation know of anything that may lead to an increase in the condo fees?
- Has the corporation levied any special assessments? (a special assessment is a type of common expense fee that is in addition to the regular condo fees and help pay for things like unexpected major repairs or shortfalls in the reserve fund).
- Are all utilities for the unit included in the condo fees?
- What services (e.g., security, maintenance, staffing) does the budget include and how much do they cost?
- What is the amount in the corporation’s reserve fund? (sometimes, when a condo corporation has a large reserve fund in relation to its operating budget, it could mean that major repairs may be needed soon. It could also mean that the corporation planned well and saved money in advance. If the reserve fund is low, it could mean that the corporation just spent money on major repairs and is now replenishing the fund).
- Is there a standard unit by-law and an insurance deductible charge-back by-law? (they may spell out how the condo corporation’s insurance works when there is damage to your unit, to other units, or the common elements that originate from your unit).
- Is the corporation involved in any lawsuits? If so, what is the case about and how much money is at stake?
- Are there any judgements against the corporation? If so, does the corporation have to pay any money to another party?
- How many parking spaces and locker units come with the unit?
- Are parking spaces and locker units owned by individual unit owners or are they exclusive-use common elements? (it’s important to understand if you will have a parking spot or locker space, and if you or if the corporation will be responsible for maintaining and repairing it).
How can we help you?
Whether buying or selling your first … or fifth condo, we can help you through the process and find the right home or investment choice for you!