Condominium living can be an appealing option, especially for those in a big city. Condos are affordable and someone else takes care of maintenance and upkeep, such as shovelling the snow, cutting the grass or even replacing the roof. In addition, many condominiums have enhanced security features and some offer a range of social, entertainment and recreational activities.
However, condos are a unique type of ownership structure and potential owners should be aware of special considerations surrounding the purchase of a condo, which are different from a conventional home. According to the Canada Mortgage and Housing Corporation (CMHC), when you purchase a condominium, you own a private dwelling called a unit. The unit is registered in your name. You also share ownership of the common elements and assets of the building. It’s important to be aware of your unit’s boundaries before you purchase. You’ll want to know, for instance, whether you’ll be paying for window washing or whether the condominium corporation will be responsible for this. This information can be found in the condominium’s governing documents. In addition to paying for your unit and a share of the common property, you will also pay monthly condominium fees. This is intended to cover the upkeep and replacement of common elements. The fees also pay for the corporation’s insurance policies, utilities and services such as snow removal, CMHC notes. Some of the fees may be put into a reserve fund, which is intended to cover the estimated cost of future maintenance and repairs. Some provinces require that condos conduct a regular reserve fund study, which can tell unitholders how much should be paid into the reserve fund. The study is a detailed examination of all of the condo’s components along with an analysis of future replacements and repairs, including costs. Keep in mind that condominium fees can be raised to reflect the changing costs of operating a building and the state of the corporation’s reserve fund. Condos also have rules and bylaws that unitholders must follow. These cover contentious issues related to condo living, such as pets and parking. Make sure you carefully review the condo’s bylaws before you make an offer. Condominiums offer an attractive lifestyle, but they’re not for everyone. For instance, you won’t have a private garden and you’ll likely have limited storage space. But for many people, condos offer an ownership option without the hassles of maintenance and repairs. And even with additional fees, condo living is less expensive than home ownership. That may be the biggest reason for the condominium’s enduring popularity. Comments are closed.
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Cecil Darren Frank - Toronto Real Estate AgentArchives
October 2019
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