All about Condo Ownership
Condo living can be the perfect lifestyle choice. Providing amenities, location, and community! Read more to learn about ownership perks and risks
What is a Condo?
It can be in many shapes & sizes:
Apartment-style
Duplexes
Townhouses
Detached single-family
Plots of land
A condo is registered with the municipality as a corporation. Just like it sounds, a condominium corporation is a business. Unit owners are like shareholders in a company.
What is an Assessment?
When a Condo has repairs that need to happen, and they don't have the funds to pay for it, they will call on the owners to come up with the money. This is the most considerable risk to owners: if the condo becomes desperate for repair, and the budget does not account for this. Unit owners may be required to pay a lump sum of cash, or the monthly condo fees may increase substantially.
Bylaws
Condo corporations set, maintain, and enforce the bylaws that govern the corporation, the condo complex, unit owners, tenants, and other occupants. Common Bylaws:
Age Restrictions
Pet Policies or Limits
Common Area Permitted Uses
Parking Terms
Before buying a condo you will have the opportunity to read the bylaws to ensure it fits your intended use.
Ownership Style
As a Condo owner, you own a private dwelling called a "unit" registered in your name. You may also have titled, assigned or leased parking stalls and storage units. As an owner, you only own the inside of your unit and anything outside of that is common property. It's essential to be clear about your unit's boundaries and how you can use the common area.
Regulations for Condo's
The Condominium Property Act outlines the obligations of the condo corporation. The Act requires Condos to:
manage, maintain, and repair common property
hold insurance
maintain a reserve fund
present an annual budget
collect monthly fees
maintain documents and records
enforce the corporation’s bylaws
All this is carried out by the condo board.
Ready to Buy?
You can make an offer when you have found the perfect unit! In Alberta, our contracts share the information the seller is expected to provide a buyer. With these documents, the buyer can read them over to learn all the condo details. The Condo Package has:
Condo Financials and Budgets
Information Statment for the Unit
Board Meeting Minutes
Reserve Fund Plans and Study
Insurance Standards and Certificates
A Condo can be the perfect solution for people looking to simplify. The have lots of awesome perks but can come with some different risks! A condo can offer many amenities and services which is great for those who want less maintenance. A condo can also be very similar to a Fee Simple property where the condo owners have lots of independence.
What are your thoughts on Condos? Love em or hate em? Let me know in the comments!
