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
- 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.