Condominiums – 15 Things To Know Before Buying – Part 4

15 Things To Know Before Buying A Condominium Continued…

11. What are Common Expenses? (Monthly Maintenance Fees)
These fees provide the condominium with the cash necessary to maintain the common elements, fund the reserve accounts, pay for property management and generally operate the Corporation. Upon purchasing your unit, you will be responsible for making common expense payments to the condominium corporation. The amount can vary depending on the size of the condo and the amenities.

12. What is a Reserve Fund?
The Reserve Fund is a trust fund established by the condominium corporations to anticipate costs for major repairs to the capital components of the condominium’s common elements.

13. Do you need Insurance?
The condominium corporation is responsible for insuring the common element areas and the unit. This insurance coverage includes public liability for those areas, however, you are responsible for obtaining your own insurance for your contents and any improvements that have been made to the unit since it was first constructed. You are also responsible for obtaining personal liability insurance for your unit – make sure you obtain a proper condominium unit insurance package and NOT a tenant package.

14. Can you make changes to your unit and the common areas around it?
You can decorate or renovate your unit, although the condominium may have rules about the time of day that such renovations can take place. In some cases, you may need permission from the Board of Directors in advance.

15. What else should you ask about?

  • Utilities: In some condominiums, utility charges and cable t.v are included in the common expense – ask the Vendor or the Manager of the building what might be included.
  • Parking: Almost all condominiums have restrictions on the availability of parking. Ask the Vendor, Manager or someone on the board.
  • Pets: Some condominiums prohibit owners from having pets or have rules governing the number, type or size of pets. If you have pets, ask your lawyer or realtor to verify that pets are allowed.
  • Maintenance and Repair: In most condominiums the corporation is fully responsible for the maintenance and repair of the common elements. In some, however, these duties may be shifted back to the homeowner to some extent.
Thinking of purchasing or selling a condo?

contact Terra Firma Real Estate at 613-721-7434!

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Condominiums – 15 Things To Know Before Buying – Part 3

15 Things To Know Before Buying A Condominium Continued…

 7. Get a Status Certificate
Purchasing the “Status Certificate” allows you to find out a great deal of information about a condominium and should purchased before you firm up the offer. They cost $100 and are worth it. The easiest way to do this is to have you agent make the offer conditional for 10 days to allow you to obtain the certificate, review it with your lawyer and be satisfied with its contents and attachments. The certificate will contain the following information, among other things:

  • confirmation of the amount of the reserve fund
  • whether the unit you are buying is up-to-date for common expense payments
  • whether there are any large increases in monthly common expenses being considered
  • whether there are any special assessments being considered
  • whether the corporation is a party to any legal actions
  • a copy of the current budget
  • the most recent audited financial satements
  • copies of the condominiums Declaration, By-laws and Rules

8. The Agreement of Purchase and Sale – Older Condominiums
Local or provincial real estate associations have developed standardized forms specifically designed to be used when purchasing a condominium. Ensure your offer uses the correct document for condominiums and contains a condition allowing you time to get a status certificate. Being pre-qualified for the loan before you make an offer will allows you to be prepared in know what you are able to afford and offer.

9. The Agreement of Purchase and Sale – New Condominiums
Most agreements contain provisions setting out any additional costs may be charged back to the buyer at the time of final closing, called “adjustments”. It may be possible to negotiate some of these charges. These provisions must be read carefully as they can easily increase your purchase price. Make sure to revise this with your lawyer.
Be prepared for additional deposits before you firm up your offer. Make sure you have those funds available.
In a new condominium, it is not unusual for you to be asked to take occupancy of the unit months before the developer is in a position to transfer the ownership of the unit to you. During this “occupancy period” you must pay an occupancy fee to the developer. When budgeting for your purchase, you should ensure that you have at least three – six months worth of occupancy fees available.

10. Disclosure Statement – New Condominium
This is a package of information about a new condominium that is to be built or is under construction. It contains much of the same information as the Status Certificate. When buying a new condominium unit from a developer, a purchaser is guaranteed a 10 day “rescission” period, within which they can review the disclosure package. If you and your lawyer are uneasy about anything within the document, you can rescind your offer to purchase and receive your deposits back.

Stay tuned to read more about what to know before buying a condo!

For further inquiries, contact Terra Firma Real Estate at 613-721-7434!
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Condominiums – 15 Things To Know Before Buying – Part 2

15 Things To Know Before Buying A Condominium Continued…

4. What is the Condominium Act, 1998?
When you purchase a condo unit, you automatically become subject to the provisions of the Condominium Act, 1998, which governs all condominiums in Ontario. The current Act includes provisions that, among other things provides for penalties for non-payment of common expenses or violations of Corporation Rules and Regulations. The Act ensures that the condominium has sufficient funds to operate, that everyone pays their fair share of that cost and obeys the rules.

5. What are Declarations, By-Laws and Rules? (Should you care?)
The Declaration is a document that will contain certain mandatory provisions as legislated by the Condominium Act 1998 such as:

  • specifications of the boundaries of your unit
  • the percentage use to calculate monthly common expenses for your unit
  • other restrictions and obligations that may affect the use of your unit

By- Law’s set the basic organizational and administrative functions of the Corporation, including the duties of its Board of Directors and officers. The by-laws also make provisions for calling owners’ meetings and for the election and qualification for the Board of Directors.

All condominium corporations have rules which form the standards of behavior for the community. These govern the day-to-day use of your unit and the common elements.

You have the right to insist that the Declaration, By-laws and Rules be complied with by all other unit owners, tenants or other residents of the condominium complex and, yes, you should care because the other owners can insist that you abide by them as well.

6. Who are the Board of Directors and what is a “Property Manager”?
The majority of condominiums in Ontario are governed by an elected Board of Directors. The board members are usually other owners in the condominium. They are responsible of administrating the condominiums’ business and financial affairs.
All condominiums are administered by an elected board of directors. However, many condominiums hire professional property management companies to assist them. The Manager’s role, among other things, is to oversee the day to day operation of the Corporation, see to the collection of common expenses, advise the Board of Directors, assist in the preparation of budgets, and attempt to enforce the Rules.

Stay tuned to read more about what to know before buying a condo!

For further inquiries, contact Terra Firma Real Estate at 613-721-7434!
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Condominiums – 15 Things To Know Before Buying – Part 1

1. Are you ready for the condominium lifestyle?
While some people may be concerned about restrictions that sometimes apply to the condominium lifestyle, there are many advantages as well, including

  • relief from maintenance and repairs
  • enjoyment of recreational facilities
  • security
  • a sense of community
  • ability to exercise some control over your living environment by utilizing your voting privileges

2. Knowledge is Key!
Finding a realtor who is experienced and knowledgeable in condominiums is extremely valuable. Retain a realty lawyer who is also familiar with condominiums before you make an offer. You will only have a matter of days to firm up a conditional offer and you can waste precious time searching for one who can help you.

3. Know what kind of condominium you are buying
The new Act now recognizes 5 different types of condominiums which are briefly described as follows:

1. Common Elements Condominium: this is a condominium where there are no “units”. Instead an interest in the common elements is attached to an adjoining, piece of land referred to as a “Parcel of Tied Land” (POTL). The POTL is usually a freehold detached home.
2. Vacant Land Condominium: this is a condominium in which there are both common elements and “units” however, the units are actually created as a piece of vacant land, similar to buying a vacant lot in a subdivision, upon which the owner will have a house constructed. The “unit” would then include all of the land in its boundaries as well as any dwelling units or other structures constructed on it.
3. Leased Condominium: this is the condominium in which the ownership of the land upon which the condominium buildings are constructed will remain with a developer or be owned by investors. The owner then lease the land and building to the condominium corporation for a minimum initial term of 40 years. Purchasers will then acquire a leasehold interest in their unit. The corporation will pay rents to the owner form the common expenses.
4. Phased Condominium: is a condominium corporation that is built in stages. When stage one is complete, a condominium corporation is then registered to include the units that have been constructed. The developer can then build the next stage. Once it is completed, it is then merged into the original corporation and so on until all of the condominium units are completed.
5. Standard Condominium: essentially, a standard condominium refers to all condominiums other than the ones noted above.

Stay tuned to read more about what to know before buying a condo!

For further inquiries, contact Terra Firma Real Estate at 613-721-7434!
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GUEST BLOG: New Environmental Obligations Affecting Condominiums in Ontario

GUEST BLOG:

We have asked Nancy Houle & David Lu with Davidson Houle Allen LLP Condominium Law to write this blog post to share their knowledge and expertise with you!

We are seeing governments enact policies with the goal of environmental sustainability in many aspects of our lives. Condominiums in Ontario are no exception. In Ontario, some of the recently enacted changes include:

  1. creating a procedure in which condominiums, or owner(s) can install electric vehicle charging stations in the common elements;
  2. requiring condominiums of a certain size to report their energy consumption to the provincial government; and
  3. allowing clotheslines and clothes trees to be installed at condominiums under certain conditions.

EV Charging Stations can now be installed in Condominiums

Under the newly amended Condominium Act, 1998 (the “Act”), a Condominium Corporation could, at its expense and without an owners’ meeting, install an electric vehicle charging station if:

  1. The estimated cost of the installation is less than 10% of the Condominium’s annual budget; and
  2. The Condominium’s Board of Directors believe the owners would not regard the installation of the charging station to be a material reduction or elimination of their use or enjoyment of the condominium property.

The new provisions and regulations under the Act also allow an owner to apply to install a charging station (at the owner’s expense) at their condominium.

  1. The Board would be required to approve the owner’s application unless the installation:
    1. Is contrary to the requirements of a statute or regulation
    2. Negatively affects the structural integrity of the condominium property or assets of the corporation; or
    3. Poses a serious health and safety risk to an individual or a risk of damage to the condominium property or assets of the corporation.

In addition to the Act, Condominiums also have new obligations under the Green Energy Act, 2009.

Condominiums must soon Report their Energy Consumption

One of those obligations is to report water, electricity, and gas consumption. The dates when these new obligations begin are as follows:

  • Starting on July 1, 2019, Condominium Corporations that are in buildings of at least 100,000 square feet must submit their first report.
  • Starting on July 1, 2020, Condominium Corporations that are in buildings of at least 50,000 square feet must submit their first report.

All areas of the building, including the common areas, are included in the square footage calculation. Corporations in multiple structures find their gross floor area by totaling the square footage of all the structures.

To submit a report, Corporations must first obtain their assessment roll number, property code, and an Ontario Energy Water Reporting and Benchmarking ID (which is obtained from the Ministry of Energy). The Corporation must then register an account through Energy Star’s Portfolio Manager website. Any energy consumption reports would be submitted there.

Clotheslines and Clothestrees can now be installed in certain circumstances

The Green Energy Act also allows clotheslines and clothestrees to be installed even if the Condominium Corporation has a rule prohibiting them.

However, owners can only install clotheslines or clothestrees if the installation:

  1. does not impede safety or access to and from the building
  2. takes place in an area where the unit owner has exclusive use
  3. is installed directly on the ground, or on a deck/platform that is acceptable to and no higher than the ground floor; or on a step stool or similar device that is directly on the ground or a deck/platform (as described above).

These new obligations are certainly arriving at a challenging time as the Condominium industry in Ontario grapples with the many changes that have come through the pipe. Hopefully, as everyone gets more familiar with the new processes and procedures, the new obligations will become a routine part of regular condominium obligations.

If you have any further questions regarding Condominiums please contact us at 613-721-7434/info@terrafirmare.ca or Nancy Houle at 613-231-8222/nancy@davidsoncondolaw.ca

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Is Your Basement Leaking?

Damaged Wall Peeled Paint Texture

It is extremely important to deal with leaks as soon as your suspect or see the signs to avoid causing greater damage and spending a lot of money and time on repairs! Unfortunately, because these leaks often happen behind walls that have been closed up by drywall or other construction materials, leaks may be occurring in your home but you may not see any warning signs until it has turned into a larger issue.

When these issues escalate, you may end up with unpleasant surprised such as damp carpet in your basement, or find water bugs crawling along the baseboards of your basement floor.

There are some telltale signs of a basement leak that you can watch for to ensure you stay on top of any potential issues before they turn into bigger, more expensive problems.

  1. Damage to walls, paint or wallpaper
    The walls in your basement often act as an early detection system for any leaks that have sprung up behind the walls. Pay close attention to their overall condition to spot leaks in their early stages. Look for any areas of your walls that are bowed or discolored, or spaces on the wall that are damp or soft to the touch – this signals that the drywall may be wet, and perhaps even waterlogged from a leak.
  2. Damage to floors
    Inevitably, gravity will pull any moisture and water through the home, and if your walls remain preserved due to moisture barriers, the odds are pretty good that the moisture will eventually become evident in your basement floors.If you have wood flooring in your basement, look for any patches that appear to be swelling or buckling. Wood is particularly vulnerable to water damage, so these signs should appear fairly early after the occurrence of a leak. If your basement is tiled, look for tiles that are stained and/or discoloured, or any tiles that are coming loose or feeling soft as you walk over them. This is a sign that moisture has been building up underneath them, often due to a leak.

    All basement leaks should be dealt with as soon as possible in order to avoid costly damage. If you have a nagging basement leak, be sure to hire a professional to assess the situation.
    Contact us for our recommendations 613-721-7434.

http://www.ottawahomewaterproofing.ca

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Benefits of Hiring a Real Estate Agent

How Much Will a Real Estate Agent Save You?

 

 

Some homeowners choose to sell their homes themselves to save money on the commission. Ironically, these homeowners would have walked away with more money and less hassle had they let an agent do the hard work for them.

According to the National Association of REALTORS®, a home sold by a real estate agent sold for nearly 13 percent more than the typical home that was “for sale by owner.”

It’s important to work with a local real estate agent that knows:

  1. How to set a price that will attract the most buyers
  2. How to best reach the most likely buyer for your home
  3. The features buyers expect from homes in your area
  4. What marketing techniques are driving the most buyer traffic

If you are thinking of buying or selling, contact us at 613-721-7434!

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Condominiums – How Do I Choose A Condominium?

With the Spring Market beginning, it’s the time of year that we fill up the gas tank, load up our Buyer’s and start looking at Condos! And then the inevitable question comes up:

What’s the deal with Condos?

The discussion surrounding types of Condos is one that could be covered over multiple columns as well as the perceived positives and negatives. A key factor in deciding to purchase a Condo is a prudent and exhaustive review of:

1. Why are you buying a Condominium?
2. Does the neighbourhood matter?
3. Is proximity to amenities important to you?
4. What are the Condo fees, and what do they cover? (or proposed fees)

Often the first step is understanding the different types of Condo’s and their potential benefits/negatives. Would you prefer a full house, or possibly a 1 or 2 bedroom apartment? Some would wonder why this matters, but Condominium Living is dependent on choosing a lifestyle outside of residential freehold. The type of Unit preferred is usually selected prior to viewing them and is quickly decided after a few Showings.

The Realtors® will often be a the first point of contact for a potential Buyer and there is a great marketing opportunity for Board’s and Property Managers to consider when Unit’s come up for Sale in their Condominium Project:
A lot of Condominium Buyer’s are curious not only about the Condominium itself, but the community within. A great feature that a lot of Boards have created is a website with features and benefits of their building/association. Keeping an updated website and a proper information board is critical to providing key information to potential buyer’s as they tour the facilities.

Today’s buyer’s are web savvy, and property managers and boards should be aware that there a number of websites out there that are used by Real Estate Agents and Buyer’s alike to help them gather information on the condo, board or property management company.

Often the overall appearance of the Building weighs in more than people think when Buyer’s are comparing Units. If the overall building is in disrepair, and general maintenance and upkeep are lacking then how well the Reserve Fund is and Operating Budget maintained?

A great way for a property manager (and the board) to stay engaged in the process of new owners is to keep an eye out for properties listed in their building/complex and reach out to the Listing agent. By offering to provide basic info about the condominium(s), often it can help when the agent (or the homeowner) may not know what to ask:
(a) Are there hours of Operation for the facilities?
(b) How many members on the board?
(c) How long has the management company had the contract?
(d) Any other items that are general knowledge but that could assist with the positive communication/view of the community.

The end goal should be a mutually positive outcome: The new Buyer selects the condo for the Unit that meets their home needs and the Community gains a valuable new member.
Working with the Real Estate Agent, Owner’s and potential Buyer’s will serve to provide future Boards and Owners with consistent ownership opportunity and less potential mis-understandings along the way.

Contact Terra Firma Real Estate for Condominium Inquiries!

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