Are you planning to own your own piece of haven? Are you opting for a condominium?

Here are some facts in buying condominiums:

Common Property:

Limited common property is owned by everyone in the building and typically includes areas such as: lobby, facilities, parking (with the exception of individual stalls), hallways, elevators etc. Basically common property is anything outside of your suite. Some common buildings may include windows and pipes as common property. Common property is often maintained by a property manager or condo board and is financed by condo fees.

Condominium Fees:

Condominium fees include the maintenance of the building and common areas as well as a reserve fund (used for large upgrades or repairs, such as new roof, elevators etc.). Most condominium fees will also go to pay all or at least a large majority of utilities (heat, water, power). Each building may work differently; however, most condo fees are based on the square footage of the unit.

Condominium Levies:

Condominium levy can strike fear in the hearts of condominium owners. A levy is a mandatory charge of any amount of dollars to every owner in a building and is done when major repairs or renovations must take place (or a voted upon) that cost more that the reserve fund can handle.

Condominium Boards:

A condominium board is a group of owners that act on behalf of the building at large to manage the state of the building as well as finances, future projects and concerns of other owners. Structured as a corporation where there is a president, vice president, secretary etc.

Renters:

Often times condominiums are purchased as a means of investment. This is a great way to broaden a financial portfolio. Make sure to check the condo’s policies on renting your suite as well all applicable laws and bylaws governing both the building and renters act in your area.

Renovations:

When renovating your condominium, you must ensure two things: 1) get permission in writing from the board. 2) Get a contractor that can tell you what you can and cannot change, removing a structural wall can spell disaster that you are liable for.