Condo Basics You Should Know
Tags: condominium
Image: Joe Howell/Flickr
There is no doubt that many new buyers are considering condominiums as their first home purchase. In some of Canada’s urban areas like Vancouver and Toronto, a condo may be one of the few options for home purchase, particularly if you are a middle income earner who wants to live downtown. Condominiums also offer many of the benefits of a home purchase without some of the more irritating aspects of home ownership, such as shovelling a sidewalk or cleaning gutters.
If you are thinking of buying, but don’t know the first thing about them, the following is a rundown of some of the condo basics.
Standard condominiums are officially classed as residential structures with separate living spaces for the individual homeowner, called units. These can range from what most people think of when they think of condos – apartment buildings – but it can also include townhomes or even detached homes. Residents fully own their respective unit, but the common elements and land of the structure (like hallways and elevators) are jointly owned by all of the residents. Along with their units, condo owners may also own additional elements like parking spaces or storage lockers.
The residents own these common elements through a condominium corporation. The condominium corporation operates the condo and maintains it through a board of directors. This board is elected by the residents, and the board oversees the corporation’s day-to-day operations, and makes major financial decisions, such as raising maintenance fees. Sometimes boards will contract out the daily work of running the condo to a property manager.
There are several variations on standard condos. Some of the more popular include:
Common elements condominiums: Common elements condominiums operate like co-operatives. Although residents own a part of the condominium, they do not own their individual units.
Phased condominiums: Many new condominium projects are phased condominiums. With phased condominiums, different parts of the structure are built in phases. The new phases may include amenities such as a gym or pool, or they may include new residences. As each phase is added to the project, the existing condominium corporation incorporates it into its declaration.
Vacant land condominiums: Vacant land condominiums are as simple as that: they are vacant land. You buy the land as part of a condominium, and you can decide what you want to build on it, within the condominium corporation’s restrictions.
As always, if you are thinking of buying a condo, or just want more information about them, it is always a good idea to talk to a qualified real estate agent. You have many options when it comes to buying a condo, and you shouldn’t miss out on an opportunity because you don’t have enough information.
Nelson Goulart
Broker of Record with Signature Service GMAC Real Estate
www.ssgmac.ca
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