Location, Location and Location. The three things to consider when you are buying a house apply to the purchase of a condominium apartment or townhouse. Pick the Project, then the apartment.

If you currently own a house and are considering a condominium, there are upsides and downsides to consider. For the freehold property owner, the greatest benefit is being able to make his own decisions about his use and maintenance of his property (having regard to municipal by-laws). The greatest downside is having to pay the full cost of repairs and maintenance. There is no one else to share expenses with. 

The condominium owner’s greatest benefit is the freedom to lock the door and travel. Another benefit is that repairs and maintenance beyond the interior walls of your own apartment are shared with the other unit holders in the Corporation. The downside of this benefit is that decisions regarding common element areas (the halls and lobby for instance) are made by a consensus of the Board. Many homeowners decide this is a small price to pay for the many other advantages of condominium ownership. After all, you can always run for a position on the Board and be at the table where issues are first addressed! 

Once you have decided where you want to live, your next task is to find an apartment or townhouse in the complex you like enough to want to buy. Your real estate Agent will be your ally in the search. He or she will sift through existing opportunities and make sure that you get into the ones you are interested in seeing. Depending on your relationship, your Agent may be proactive on your behalf and seek out only units that meet your search parameters. 

When you find what you want to buy, you will need to review the Status Package provided by the condominium corporation. This package can usually be obtained through the condo’s property management company at a cost of $100. 

The Status Package should contain an up-to-date financial statement (size of the reserve fund), a Reserve Fund Study (are the maintenance fees currently being charged sufficient to fund forecasted obligations), the Condominium Corporation’s Rules and Regulations, Budget, Declaration and By-Laws. It must also disclose whether the Condominium Corporation is involved in a legal action.   

Talk to the property manager and the men and women who run the front desk.  These are the people you will be interacting with on a regular basis after you buy.

Check the Rules and Regulations that came with the Status Package.  If you want to work out of your condo, will that be allowed?  Are there any restrictions on renting your apartment? What are the policies on bicycles, barbeques, or holiday decorations?  Can you renovate?  Be especially careful when you check the rules about pets.  That Great Dane you saw on the elevator may be grandfathered in.  

Every Agreement of Purchase and Sale for a condominium property should contain a condition along the lines of the following: 

“This Offer is conditional for a period of TEN (10) business days from acceptance upon the Buyer, at his own expense, obtaining a new Status Certificate, the usual accompanying documentation and the latest reserve fund study. Without restricting the generality of the foregoing, these documents shall include copies of the current budget, Declaration, By-Laws and Rules and Regulations. The Buyer, or his solicitor, shall have FORTY-EIGHT (48) hours (excluding Saturdays, Sundays and Statutory Holidays) from the date of receipt of said documents to review and in his sole and unfettered discretion be satisfied with same. If within the above noted time period the Buyer has not waived this condition by notice in writing delivered to the Seller or the Seller's Agent, then this Agreement shall become null and void and the deposit shall be returned to the Buyer without interest or deduction. This condition is inserted for the benefit of the Buyer and may be waived by him at his sole option.”

The only exception to this would be if the above documentation was available for your review before making your offer. Having a Status Package available before the offer process is a great benefit to both Buyers and Sellers. With said Package in hand, the Buyer can offer with confidence and make an unconditional offer. In the event of a competition for his property, a Seller could insist upon reviewing only unconditional offers. Win Win.

Best Wishes for Success,

Peter