BUYING A CONDO?? read more...
When buying a condo you should be considering the following: location, price, size and layout, but most importantly, know the financial well being of the condominium corporation.
If insufficiently funded to operate and maintain commom elements you can be left with higher costs down the road. Low Condo fees while attractive upfront and which may make a particular condominuim appealing, may be a sign that you should be extra diligent in determining if the condo corp is fully prepared to fund major repairs and renewal projects. So be sure to request a copy of their annual operating budget and end of the year financial statements. For resale condo's check the estoppel or status certificate which is a package of legal documents that may include the declaration , bylaws, rules and information about the corporation's insurance, reserve fund, property management contract and any outstanding judgements . For new condo's review the disclosure statements that also supply important financial information. An important part of the operating budget is the reserve or contingency fund. The purpose of a reserve fund is to provide financing for major repairs and renewal projects over the life of the building or buildings that form the condo corporation. This fund insures the common elements will be maintained in good shape for the life of the project. To learn more about condo ownership, consult Canada Mortgage and Housing Corp's (CMHC) publications called Condominium Buyers' Guide. Download your FREE copy at www.cmhc.ca or call 1-800-668-2642.
CENTURY 21 First Canadian Corp., Brokerage*