Buying a Condo – What you need to know

Buying a Condo - What you need to know

You may have seen advertisements for condos in your area and are wondering if having such a place is for you. Besides cost and design and maintenance options, there are still other things to consider when buying a condo. Royal Canadian Realty can answer any questions when it comes to buying houses and condos and can be the support you need when making such a decision. Let’s take a look at a few things you don’t want to overlook while condo shopping. 

There are Fees: Condos have monthly fees. Most fees are non-negotiable. Fees are set by the condo board and usually cover water, hydro and sometimes heat if it is controlled centrally. The fees also go to paying for the common areas of the condo building. These areas include any landscaping, pools or parking lots. Some fees may be put into a reserve fund. Monthly fees can be increased by the condo board at any time. A list of fees should be available.

You will need Insurance: Many people want to buy a condo because of the lower insurance payments. Homeowner insurance is usually cheaper for condo owners than single-family homeowners. You will have to pay the building’s insurance, included in the condo fees. In most provinces, it is mandatory to have New Home Warranty insurance. It gives you one year of full coverage, including material and work defects.  This insurance’s cost is usually put in the sale price of the unit. Each unit has its own insurance to cover the interior of the unit. 

Your Building must have a Certificate: Your condo building must have a status certificate. There is important information on these certificates, such as financial situations, condominium corporation stability. The certificate should also have the status of the reserve fund, budget and management contract. You will also see if the building is faced with any legal issues. You are allowed to see the certificate before buying your condo.

Know what Kind of Management you have: You can have a self-managed condo, or you can have one run by a board of directors. Sometimes a management company will be hired, or even an independent contractor, to manage the condo building.

Attend the Meetings: Being a condo owner will give you something to do. You will want to know what is going on inside your building, as well as outside. To keep up to date on what is going on with the condo building, you can always read the notes when they are posted, and you can go to the meetings. Condos have regular meetings and there will always be some sort of newsletter or minutes that you can request and read. This will help you keep up to date with any decisions about the property. 

As with buying any home, do your research and find out what is best for you and your lifestyle. When you are working with a Reality like Royal Canadian Realty, you can be confident you will have the guidance you need to make the best choice. Call your realtor today and get answers from professionals who care about you and your home.