Watch Out for Condo Fees when trying to sell or rent your new condo!

There are a few scenarios that can happen when you buy a condo. One of the biggest problems that happens when you buy a condo for investment is the fees that the condo corporation will charge you if  you sell your condo before the corporation registers the building. 

 
You must make sure that you are allowed to sell or rent the condo before the title is registered without a penalty. 
 
Another thing you must watch out for is the condo corp charging you H.S.T.  When the condo goes up they usually include this in the price. In some cases if they see you've listed it on MLS for rent or sale before closing they will consider this a not a primary residence and charge you the H.S.T. Do not fear! You can recoup. The money but you must come up with that money on closing which could be a hefty amount. I believe you must register for an H.S.T. number to get the money back.
 
Make sure you have a good accountant to figure the loop holes. You must also get a good lawyer who specializes in condos and can get through the stack of paperwork that is associated with buying a condo. 
 
Lastly you must also consider the property tax that you must pay. If you sell the condo say six months after you get title, you will not have a tax receipt, but you are still obligated to pay the property tax and it could take another year or so to get that bill. You will be hunted for that money so put that in your budjet. 

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Ernie Arrizza

Ernie Arrizza

Sales Representative
CENTURY 21 Kelleher Real Estate Inc., Brokerage*
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