Buying a new condo: part 1

NEW CONDO BUYERS

Whether you’re a first-time buyer or have lived in your condo for years, the Condominium Act, 1998, is designed to protect your investment, improve the day-to-day operation of your condominium and allow for new kinds of condominium developments.

Quick Tips for Buying a Condominium

It’s often said that buying a condominium is buying a lifestyle. What does that mean?

• Condominium living is different from owning or renting a detached house, townhouse or apartment because condos have a dual nature. Condominium owners hold title to their units and share responsibility for the operating costs of the balance of the property (common elements such as lobbies) that makes up the condominium.
• There are many advantages to condominium ownership. It may be less expensive than other types of home ownership. It can provide an “instant” sense of community. While someone else is shoveling the snow, you can participate in community decision-making.
• But condominiums are not everyone’s cup of tea. Condominium corporations may set restrictions on such things as owning pets or having an outdoor barbeque.

Ontario’s Condominium Act

The act provides strong protection for buyers by setting out information (e.g. whether the developer intends to lease some of the units) to be provided when they buy a unit. It makes sure owners have a say in the way the corporation is run. It also establishes new types of condominiums.

If you want to change your mind and cancel the contract, the legislation gives you a 10-day “cooling-off” period from the time you receive a copy of the signed purchase and sale agreement or the disclosure statement (whichever comes later). In some circumstances, you may have additional time to cancel the contract if there has been a material change as defined in the act.

Making the Fine Print Clear When Buying a New Condo

First, you should remember that you have a 10-day cooling off period after receiving the disclosure package to cancel the deal if you change your mind. Here is the information you need to know as you make your decision:

A condominium as a corporation is formed when a declaration and description are registered at the Land Registry office of the jurisdiction in which the condominium is situated.

Description: Includes a detailed plan of layout and location of the development, surveys of land, location of the buildings, architectural plan of buildings and specifies boundaries of each unit.

Declaration: This is the founding document that details what constitutes common element vs. what constitutes each unit, establishes the percentage of ownership for each unit and the percentage each unit has to contribute to the common expense fees. This document is often referred to as the “constitution” of the corporation.You are probably aware of the new condo coming up in Brampton. For more information on it drop me an email.