Condominium Properties

Buying a condominium is different from buying a regular house. Whether you are a first-time buyer or not, you need to pay attention to the different aspects of buying a condominium. There are many questions you need to ask yourself to protect yourself before making this life-changing decision.

Our real estate attorney at Law Wise can explain the type of rights you will have. For instance, do you own your storage locker or parking space, or do you have the exclusive right to use them as part of the common elements?

The condominium corporation manages the condominium building and land on behalf of the owners. The owners of the units elect a board of directors, which makes the corporation’s decisions, including its financial decisions.

There are different types of condominiums in Ontario, including: standard condominiums, phased condominiums, vacant land condominiums, common elements condominiums and leasehold condominiums.

Condominium Documents & Rules: A condominium’s governing documents guide the organization and operation of the corporation, as well as the permitted use of units and the limits on that use. Here are some documents you may encounter during your condominium purchase: the Condominium Declaration, the Condominium By-Laws and the Condominium Rules.

Common expenses are allocated for upkeep, including, but not limited to, general cleaning (hallways, elevators, etc.), building repairs, snow removal or even landscaping. In addition, they are used for property management fees, contributions to the reserve fund and general building services. The condominium’s declaration sets out each unit’s share of the common expenses.

Reserve Fund: Every condominium corporation must establish and maintain this fund, which may be used only for major repairs and replacements of the common elements and the corporation’s assets. A portion of the common expenses paid by each owner goes to the Reserve Fund.

A Special Assessment: These additional costs may be an unwanted surprise. A special assessment is an extra charge on top of the monthly common expenses, which the board may levy if, for example, the Reserve Fund does not have sufficient funds to pay for major repairs. A special assessment may also be levied to cover a major unexpected expense or a shortfall in the operating budget.

A status certificate is a written summary of the current financial and legal status of the condominium unit and the condominium corporation. This certificate will give you detailed information about the unit’s common expenses, the reserve fund, whether any legal action is pending against the condo corporation, and any special assessments that have been charged to the unit. The condominium corporation must provide it within 10 days of receiving a request and the fee, which can be up to $100 including taxes. It is advised that your real estate attorney reviews a copy of the updated status certificate before you are committed to the purchase.

Lifestyle Restrictions: Some condominium rules and regulations may affect your lifestyle. For example, you may have a pet or enjoy barbecuing on a terrace. There may also be restrictions on the types of vehicles that can be parked and on smoking. Tell your real estate agent and your real estate lawyer right away if any of these restrictions is a deal-breaker for you.

Realty Tax Assessment:  When purchasing an “almost new” resale unit, you need to carefully consider whether a separate realty tax assessment has been done for the unit. If the Municipal Property Assessment Corporation (MPAC) has not yet assessed the unit separately, a supplementary or omitted tax bill may arrive later, and an omitted assessment can cover the current year and the two years before it. Your Real Estate Attorney at Law Wise can work with you to determine if unit taxes are assessed separately and make efforts to protect you from paying taxes that relate to a previous owner’s time.