What to Check Before Buying a Condominium
Do you want to become a homeowner? Have you made the decision to buy a
condominium? Here are the elements to check before making your purchase.
The main elements to verify before becoming a co-owner
The purchase of a condominium involves specific features that your real estate broker can explain to you. In particular, your broker has an obligation to verify all of the items listed below.
The amount of money available in the contingency fund
The contingency fund is one of the elements that needs to be checked when buying a condominium.
Since 1994, the law provides that the syndicate of a co-ownership must create a contingency fund: "The syndicate establishes, according to the estimated cost of major repairs and the cost of replacement of common portions, a contingency fund to be used exclusively for such repairs and replacement, which is liquid and available at short notice. The syndicate is the owner of the fund." (article 1071 of the Civil Code of Quebec).
The contingency fund cannot be used for any other purpose, such as to cover a deficit, pay laywer or notary fees, or for the purpose of improving the building.
The co-owners must pay their contribution to the contingency fund on a monthly basis.
When purchasing a condo, your real estate broker will take the time to review the contingency fund to ensure that it is in good financial health.
The contents of the declaration of co-ownership
The declaration of co-ownership is a notarial contract that – among other things – makes it possible to establish the rules of community life and define the rights and obligations of the co-owners. It is imperative that you read this document carefully before buying, in order to avoid any surprises. Your real estate broker will assist you during this important step and will help you interpret the declaration.
The regulations of the condominium (included in the declaration of co-ownership)
It's important to read the by-laws of the condominium that govern the operation of the building. They are applicable to all owners and tenants. They define the rules of the private and common areas (animals, parking, etc.) as well as the functioning of the community.
Remember that your real estate broker is at your disposal to answer all of your questions and to refer to other resources (notaries, lawyers, banks, etc.).
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