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by Matthew Klonowski
14January
2016

Buying a resale condo in Barrie?

 

nauticaBuying a resale condo in Barrie?

Buying a condo for a first time can be challenging when you do not have the right guidance. The Barrie Condo Team strongly suggests that before you go thorough with a condo purchase, you should consider whether condo living fits your lifestyle. What makes condos different from freehold houses is that you own your unit but you also share ownership of the land, building and common areas. You share costs with fellow members of your condo association, and the board of directors or a property management company makes the big decisions. Condos often have rules regarding pets, noise, and even drapes and balcony furniture.

When you make an offer on a condo, it should be conditional on a review of the status certificate which includes detailed information regarding the condo corporation. It is important that you work with a Real Estate Professional registered with Real Estate Council of Ontario. The Barrie Condo Team will be more than happy to assist with your condo needs.
We also recommended that buyers get advice from a lawyer and accountant. Please keep in mindBCT_PHNautica_033 that by law, if you buy a resale condo, you do not have a cooling-off period to cancel the purchase (if you buy a newly-built condo, you
have 10 days to cancel)

 

 

Here is what a status certificate should include:

-A statement on the status of the current owner’s condo fee payments. Is the current owner up-to-date in paying his or her condo fees? If not, you may owe these fees to the corporation if you purchase the unit.
-The condo corporation financial status
This includes:
• the current budget
• the most recent audited financial statement
• the status of the reserve fund
• any special assessments that are in place
• if the corporation knows of anything that may result in future increases in condo fees
• if major repairs are planned, monthly condo fees are likely to increase

-Condo declaration
This sets out the legal definition of the units and common elements, shows the percentage of ownership each unit has in the property and shows how much each owner must pay in condo fees. The Barrie Condo Team can answer any questions you may have regarding the common elements in any Barrie condos in the area.

-Condo by-laws, rules and restrictions
The board of directors can pass rules and by-laws that will govern the condo corporation. These must be accepted by the owners and cannot conflict with the Condominium Act. The board of directors may also make rules to govern day-to-day living, like how the freight elevator can be used, if owners can have pets, or what colours can used for blinds or shades

-Reserve fund
It is also important to check that a reserve fund study has been completed and that the reserve fund is not underfunded.
Part of the value of the condo unit you are buying is the financial health of the reserve fund

-Condo insurance
Owners need to understand how a corporation’s insurance coverage works because the cost of damage and repairs could be significant.
This may help you determine if you would like to get your own the insurance coverage.

-Utilities: could be included with your condo fees or paid separately. Each unit could have its own hydro and water meters, or there could be one set of meters for the whole building, with everyone sharing the costs equally. You’ll want to know so you can budget accordingly.

-Rental status: when owners lease out their units, they are required to notify the condo corporation. The corporation keeps a tally and includes the figure as part of the status certificate. If you want to rent your unit, it may make sense to buy in a condo that contains many other tenants. On the other hand, if you plan to live in your unit, a place where most owners live in their condo may give you the kind of community you desire.

-Parking details: your unit may include a parking space, but it’s important to understand whether you will own the parking space yourself, or whether it’s a common element owned by the condo corporation that you are assigned, but that you don’t own.
BCT_PHNautica_036
The Barrie Condo Team recommends that buyers of resale condos get a home inspection. A quality home inspection will help you make an informed decision before buying a home. It will help you understand a home’s condition and value.

Ultimately when you buy into a condo, you are also choosing your community. It’s a big commitment, so take the time to find a place that suits your personal needs. Don’t overlook potential issues in the rush to purchase a property. For more information about buying a condo, contact the Barrie Condo Team; we will be more than happyBCT_logo_tall_newtag to assist you with the purchase of any condo or townhouse in Barrie and area.

Source: Ministry of Government and Consumer Services’ Condo Guide.

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