Buying a Condo: How to Make a Smart Choice
Are you thinking of buying a property, and already have the condo of your dreams in mind? Here’s what you should know to make an informed decision.
Does it meet your expectations?
First, make sure that your future home meets your expectations. Touring the property at different times of the day could help avoid unpleasant surprises. And while you’re there, why not use this opportunity to chat with the neighbours in order to learn more about the neighbourhood, nearby services, etc.?
Management of the condominium
When buying a unit in a condominium, it’s important to demand a clause stating that your promise to purchase is conditional on a consultation of the condominium’s documents. Your real estate broker can properly advise you about this.
The seller must be able to provide you with items such as the declaration of co-ownership, which includes the regulations governing the public and private portions of the building, the minutes of the general meetings from the last two years, the maintenance book that lists the work that was performed in the past, the building’s certificate of location, as well as the status of the contingency fund.
In addition, three documents are essential for making an informed purchase. They are the condominium’s provisional budget, its financial statements and a study produced by a professional that describes any major upcoming renovations that will need to be performed, if this is the case.
The inspection can (and should) be a conditional clause in your promise to purchase. If major defects are apparent, the buyer is entitled to negotiate the asking price downward.
However, whether the inspector examines the building’s private portions or the entire property, this procedure constitutes a real challenge. An inspection has its limits, especially if the building is quite large. A review of the documents relating to the building’s maintenance is therefore very helpful.
While it may seem that there are many verifications and precautions to consider, they reflect the complexity surrounding the purchase of a condominium. So make sure you are accompanied by a real estate broker, so that you can avoid unpleasant surprises.