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Questions asked by every CONDOMINIUM PURCHASER

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Questions asked by every CONDOMINIUM PURCHASER Buying a brand-new condominium is a thrilling experience, and that’s putting it mildly. However, when you begin to feel more at home in your new surroundings, you may have some questions. Some of the more frequent examples are listed below. How might my situation be affected by interim occupancy? Before the entire development is registered with the local municipality, you may move in, but you won’t be the legal owner of the unit. The time between when you receive the keys to your new condo and when you assume title to the apartment is known as “interim occupation” (when you own your home) There will be a monthly charge paid to the builder during this time that will cover the interest accrued on the remaining debt, the estimated municipal taxes on the unit, and the estimated costs of maintaining the property. When the developer finishes the condo and the condo association is officially registered with the land registry, the interim possession period ends. During this time, you and the builder will decide upon a closing date, which is the day you will officially become the owner of the property. Who can file a claim for a warranty? Within the first 30 days of moving in, you are eligible to submit your first warranty claim for the one-, two-, or seven-year unit warranty that kicks in when you take possession. Everything from the unit’s walls and flooring to its cabinets and counters is covered by the guarantee, as long as it’s located inside the unit’s boundaries. You, the unit’s owner, must file all warranty claims with the building’s developer and Tarion. If you are a homeowner, you can fill out the warranty documents for your home and submit them to your builder and Tarion all at once using our online service, MyHome. We urge all new condo owners to sign up for MyHome as soon as they move in. When do I get to see the limits of my unit? A “unit” in a condominium complex is what a buyer acquires upon making such a purchase. Your builder should have issued you with a copy of the condominium project’s Declaration and Description, which will outline the boundaries of your unit. This will serve to define your group’s confines and its shared resources. When problems arise, whose responsibility is it to file a warranty claim, and what common components are involved? In a condominium complex, the unit owners collectively share the common elements. In most cases, the units themselves are not included but everything else on the property is. The recreation room, lobby, elevators, and parking garage are all staples. You may also have access to ‘exclusive common components,’ depending on the condo unit type you purchase. Things like a balcony that you use exclusively would fall under the purview of the common elements warranty but are not shared with other tenants. Since the condo corp is technically the “owner” of the project’s shared spaces, it is the only entity authorised to submit and manage warranty claims for these areas to the developer and warranty administrator, Tarion. When the condominium development is first recorded with the city, the warranty on the shared parts goes into effect

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Five Things to Know Before Purchasing a Condo

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Five Things to Know Before Purchasing a Condo Buying a new condo is a big investment that demands careful preparation and research, regardless of whether this is your first or fifth condo purchase. In this way, you will know exactly what to expect from your new condo and will be able to buy with confidence. Affordability of the condos As the cost of a condo is typically less than that of a “normal” house, it might be a better option for someone looking to buy their first home. Plus, you get the aforementioned extras. Although the purchase price is important, it is not the only cost to consider when deciding to become a homeowner. This is because condo maintenance expenses may ultimately make condo payments more expensive than rent payments for a similar single-family home. Mowing the lawn, cleaning the common areas, and painting the exterior of the building will not be on your to-do list. To be fair, though, somebody has to do it. You, together with the other owners, are responsible for these costs. Condominiums have more rigorous mortgage requirements. You may have heard that condo financing is more challenging, and that’s because they are. Condominiums provide their own set of obstacles when trying to get a mortgage. Condominiums are subject to further scrutiny from lenders to ensure they meet certain criteria. Some condos have these features, but some do not. You shouldn’t let the difficulties deter you, though; millions of individuals have funded their homes in this method with no major problems. Live by the HOA Rules In the process of purchasing a condo, you will be provided with a copy of the Covenants, Conditions, Restrictions, and Easements established by the condo association or condo management firm (CC&Rs). This is crucial background knowledge. To begin, they’ll outline who is responsible for what within your unit and what is yours to maintain as an individual owner. It’s possible that you’re not responsible for maintaining the exterior doors and windows if they aren’t yours. Furthermore, while central air conditioning is a standard feature, window air conditioners are not. Those specifics will be spelled out in your CC&Rs. The regulations you must follow are spelled forth in the CC&Rs as well. Liabilities are shared with hoa Because you have a financial stake in the HOA (partial ownership), you may be held responsible for its problems. As a result, you can be on the hook for some of the cost of fixing a problematic building if it gave its stamp of approval to the project. You may also be required to pay for the HOA’s legal fees and share in any losses incurred if the HOA is unsuccessful in its attempt to get the developer to take obligation. In fact, you will be treated as an anonymous third party in any lawsuit the association files. It’s probably best to avoid buying into a community with a HOA that’s in the middle of a major lawsuit or that routinely files lawsuits. The “assessments” on a condo might be costly In most cases, a financially stable HOA or condo corporation will have significant reserves. Each month’s fee should be somewhat higher than necessary to allow for savings. In this way, it will be able to afford costly maintenance and repairs if and when they become essential. However, not all condo or HOA management companies are competent. There isn’t enough savings to pay for major maintenance like a new roof, HVAC system, or window replacement.

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