Buying a condo? Here's what you should know.

Condominium ownership can offer many benefits — shared maintenance responsibilities, access to amenities and, in some cases, a more affordable entry into home ownership. But buying a condo is different from buying a single-family home, and there is more to consider than the individual unit itself.

When you purchase a condominium, you're also becoming part of a condominium corporation. That means sharing responsibility for common property and expenses and living within the corporation's registered bylaws and rules.

Before you buy, it's important to understand what you're buying into.

Consider the Full Cost of Ownership

Your mortgage payment is only one part of the cost of owning a condo. Consider your:

• Monthly condominium fees

• Property taxes

• Utilities not included in your fees

• Personal condominium insurance

• Parking or storage costs, where applicable

• Potential future fee increases

• Potential special assessments

  
  

Condominium fees can change over time as the corporation's operating costs and reserve fund requirements change.

Look Beyond the Current Condo Fee

A low condo fee isn't necessarily better, and a higher fee isn't automatically a concern.

What's important is understanding what the fees cover, whether the corporation's current expenses are being adequately funded and whether appropriate contributions are being made toward future reserve fund expenditures.

The operating budget, financial statements and Reserve Fund Study can provide important information about how the corporation is managing and planning for these costs.

Are There Major Expenses Coming?

A Reserve Fund Study can identify major repairs and replacements anticipated over the coming years, but it shouldn't be reviewed on its own.

Board Meeting Minutes, AGM Minutes, financial statements and other documents may provide more current information about projects that are underway, delayed, completed or being reconsidered.

Special assessments are also important to understand. If one has been levied or is being discussed, you'll want to know why it's needed, how much it may cost and how it could affect the unit you're considering purchasing.

Understand the Bylaws Before You Buy

Every condominium corporation has its own registered bylaws, and they can directly affect how you use and enjoy your property.

Before purchasing, understand the rules that could apply to things that matter to you, including:

• Pets

• Parking

• Renovations

• Rentals and tenancy

• Use of common property

• Smoking

• Maintenance responsibilities

• Other restrictions affecting owners and occupants

  
  

Finding out that a rule doesn't work for your lifestyle is much better before you complete your purchase than after you've moved in.

Understand the Corporation, Not Just the Unit

A beautiful unit doesn't necessarily tell you what's happening within the condominium corporation.

The documents can provide valuable information about the corporation's financial position, reserve fund planning, insurance, maintenance, major projects, legal matters, management and ongoing issues being considered by the Board.

That's why reviewing the condominium documents is an important part of understanding the property you're considering.

New Build? There Are Different Considerations

Purchasing a new condominium or buying before construction is complete comes with its own considerations.

Buyers should understand what is included with their unit, anticipated completion and possession timelines, condominium fees and budgets, parking and storage arrangements, applicable warranty coverage and the documents provided by the developer.

If warranty coverage applies — whether you're purchasing new or buying a newer resale unit — understand what is covered, what isn't and how much warranty coverage remains.

You're Buying Into a Community

Condominium ownership means sharing certain responsibilities and decisions with other owners.

The Board of Directors makes decisions on behalf of the condominium corporation, and those decisions can affect maintenance, projects, budgets, condominium fees and the overall operation of the property.

Taking the time to understand the corporation — not just the unit — can give you a much clearer picture of what ownership may look like.

Know Before You Buy

There's a lot of information contained within a condominium document package, and the documents often need to be considered together to understand the bigger picture.

At CDIC, we review the documents provided and prepare a comprehensive summary of our findings. Every review also includes a personalized phone consultation, giving you the opportunity to discuss the findings, ask questions and better understand the condominium you're considering purchasing.

Our goal isn't to tell you whether or not to buy a condo. It's to give you the information and context you need to make an informed decision with confidence.