Purchasing Condominium Property

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 condominium buying procedures. At Mian Law we will explain your rights. The condominium corporation always manages condominium and land. The owners of the units elect the Board of Directors to oversee the decisions taken by the corporation, including its finances.
Following are the various types of condominiums in Ontario:

•  Phased Condominiums
•  Common Elements Condominiums
•  Standard Condominiums
•  Leasehold Condominiums

Condominiums Documents & Rules: Documents are registered on the title of each unit and guide the organization and operation of the structure, in addition to the limitations and permitted use of units. Here are some documents you may encounter on your condominium purchasing experience: Condominium By-Laws, Condominium Declaration, and Condominium Rules. Common expenses are allocated for repairs, including but not limited to, general cleaning (hallways, elevators, etc.), building repairs, snow removal or even landscaping. In addition, they are used for real estate management funds and general infrastructure services.

Reserve Fund:

This type of fund is established by building developers to deal with major repairs, upgrades, etc. of structure. A portion of each of the common expenses goes to Reserve Fund.

Special Assessment:

These additional costs may be an unwanted surprise. It is an additional charge for the payment of common monthly expenses if the Reserve Fund does not have sufficient funds to pay for major repairs. A special assessment may also be called for a refund of any deficit or deficit in the operating fund.

Status Certificates:

Status certificates are a written summary of the current financial and legal status of the condominium unit, and the condominiums corporation. This certificate will give you detailed information about your monthly expenses, if any legal action is pending against the condo, and/or any special assessment that are charged to cover unforeseen expenses and expenses. It is advised that your real estate attorney reviews a copy of the updated status certificate.

Lifestyle Restrictions:

Some condominium rules and regulations may affect your lifestyle. For example, if you have a pet or if you enjoy doing barbequing on a terrace. There may also be restrictions on the types of vehicles that can be parked and the restrictions on smoking. Immediately bring into notice of your real estate agent as well as real estate lawyer, if any of these deal-breaker issues arise in your lifestyle.

Realty Tax Assessment:

When purchasing an almost new unit, you need to carefully consider whether a separate reality tax assessment for each property has done. If the assessment is not to date with new developments, you may find that your reality taxes increase significantly after the end of the assessment. At Mian Law Professional Corp., we will work with you to determine if unit taxes are assessed separately and make efforts to protect you from paying high taxes generated by previous owners.

Selling a Condominium Property

Seller's Responsibility for Disclosure: All sellers have a legal obligation to disclose all hidden material defects about the condominium and common items such as the community features, exterior of the condominium, or other areas such as the land area of the property. You should clearly identify all the errors that the purchaser cannot detect while visual inspecting.

All declared and prospective properties as well as special assessments should also be disclosed, regardless of whether they are part of the documentation provided to the buyer. The fact that the condominium complies with the municipal by-laws should be included in the purchase and sale agreement. Make sure all disclosures are done correctly and on time to avoid any potential buyer suing you in the future.

In most buy-and-sell agreements, the buyer may impose conditions on the seller to provide certain documentation. Some of the key documents include Condominium Corporation's Operating Budget, Condominium Corporation's Latest Plan and Report, Condominium Corporation Board Meeting Minutes, Site Survey And Property Report Of The Building, detailed guide to condominium corporation rules and by-laws, the condominium unit, and the surrounding land area.

Review of Agreement clauses:

A few of the clauses to consider in the transaction include:

•  Determining whether the modifications and additions of a building is legal
•  Determine the changes for property plans, their legal aspects, and impacts
•  Reviewing condominium corporation rules and by-laws
•  Determining the effects of termites, asbestos, or lead-based paint is detected on home inspections by an engineer or architect.
•  Effects of hazardous waste is detected during a site inspection
•  Legal consequences in the event of not closed transaction; its impact on down payment and how will it be held escrow? Planning the payment method and whether the closing is properly adjusted to reflect future financing
•  If the purchaser is to receive a financing, the legal clauses must reflect the same