Condominium Topics

Many First time home buyers are intrigued about buying a condominium.  Due to the fact its price point is very enticing compared to freehold or semi-detached properties.  Condominiums, offer a lot of tremendous amenities that are attractive to young professionals, empty nesters, and various family sizes.

Before proceeding with purchasing a Condo, do your due diligence regarding locating a property that suites your needs. Furthermore an aspect in which every potential condominium buyer should do is read up upon the Condominium Act prior. 

This article will touch upon some of the ways to search for properties and include some of the Condominium Act rules and regulations. However, best practices is to contact a Real Estate Lawyer.

Tips for New Condo buyers

1) Determine what you can afford: Speak to a financial representative (Mortgage Broker or banking representative) who can help determine your mortgage amount. Also, getting pre-approved for a mortgage can easy the process of looking for properties.

2) Research your Builder:  If you are planning on buying a new condo or resale. Visit Tarion website for more information pertaining to the builders past build sites, customer service and much more.

3) Talk to a Real Estate Lawyer:  The lawyer, will help you understand exactly what is in the Agreement of Purchase and Sale. In addition, what is included and excluded in the price of your new property.

4) Prepare yourself for the pre-delivery inspection (PDI):  This is your chance as the owner of your unit to inspect your new home. You can identify items that need repairs, incomplete, damaged or even missing prior to your official move in date.

Condominium Act

1) Reserve Fund: As the owner of the unit, if you see extra charges on the annual budget called reserve fund studies. This means the Condo Corporation, are required to conduct checks and balances about how much money they have in there reserve fund. For, any type of Capital Expenditures for example elevators maintenance, parking lots, and windows etc....

2) Interim Occupancy: Definition, the purchaser occupies a proposed unit prior to receiving a deed in registrable form (Provincial Reference Manual Ontario Edition September 2006, pg84).
The interim occupancy fee includes:
   * Monthly interest on any unpaid  balance of the purchase price at the prescribed rate
   * Reasonable monthly estimate of municipal taxes and
   * The projected monthly common expense contribution

3) Status Certificate: This document outlines the operational, legal and financial obligations of the condominium corporation.  The corporation is required to provide to a copy of the status to the person who is requesting the form.

These tips are just a few of the many aspects that you as a potential condo buyer will need to research upon. Knowledge is key when making one of the biggest purchases in your lifetime. Ask around, talk to family members who have bought before. Speak to friends who have recently bought a property. Don't go in blind.

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All the best,

MyDaddyHomes