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!