FAQs: About Condominiums

Buying a new condominium is a big decision, and one that must be researched carefully. Following are some frequently asked questions, to get you started on your research, and closer to moving into your dreamhome!

What makes a condominium different from other new homes?

A condominium is divided into units, with each unit owned by an individual. Owners share the common areas of the building (for example, a pool or gym) and pay a monthly maintenance fee that covers the upkeep of the common areas. Many people enjoy the convenience of maintenance freeliving, the security of a well established area, and the sense of community that comes with owning a condominium.

What is the Condominium Act and what does it offers to buyers?

The Condominium Act has been specifically designed to protect the investment of condo owners. The developer is required to provide a table of contents with declarations, bylaws and rules as a part of the disclosure statement. As a condominium buyer you are automatically entitled to a ten-day statutory rescission period after signing an agreement of purchase and sale, to give you a chance to review the agreement with your lawyer if you haven't yet, and to ensure that you wish to proceed with the purchase of that condominium.

What kinds of things should I look for when shopping for a condo?

Read the condominium rules and regulations to see if there are any conditions placed on pets, visitors, closing and moving days. Visit the condo during different times of day to check on noise levels. Ask to read the minutes from board meetings to find out if there are any plans to expand or improve the building for which you will have to pay extra. Find out what your monthly condominium fees will cost (your contribution to common areas). Research the price appreciation of other condos built by the same developer in similar areas to understand what kind of investment you're making.

There are so many amenities offered at each condominium I visit. Should I simply look for the biggest list?

You should think about which amenities you?ll use the most. Many condos promote or encourage a certain lifestyle, gearing their amenities to an age group or lifestyle. Part of finding the right community is deciding what 'category' you fit into. Do you exercise on a frequent basis? If you do, then buying into a condo with an extensive gym facility would be a good idea. Do you like to spend time outdoors? If so, look for green space outside your condo. Is there a certain amount of privacy? How loud is it? Consider your lifestyle and day-to-day needs when shopping for a condominium and keep a checklist handy so that you can make notes when looking at each condo.

Frequently Encountered Terms

Board of Directors: The Board of Directors is elected by and made up of unit owners and is responsible for making decisions about maintenance and repair of the common property.

Common Elements:The common elements are the portions of the condo that are not owned as part of the unit. Common elements are shared and owned collectively by all individual owners. They must be listed in the condo's governing documents and may include: parking lot, lobby, elevators, grounds, pool, and gymnasium.

Governing Documents: Governing documents describe how the condominium is organized and operated and include declarations, bylaws and rules. These can vary from one condo to another.

Property Manager: A property manager handles the running of the condo: hiring of staff, maintenance and repairs. The property manager is usually hired under contract to the condominium corporation.

Reserve Fund: A reserve fund is a special account set up by the condominium corporation to cover any costs for major repairs and replacements over time.

Unit: A unit is the living space owned by each buyer individually. Repair and upkeep of the unit are generally the owner?s responsibility.