Condo Owners Association COA

Buying a Condo the Right Way

Buying a Condominium

If you are considering buying a condo, make sure you research before signing on the dotted line says Linda Pinizzotto, Realtor and Founder President CEO of the Condo Owners Association. 

Linda has provided COA with an extensive portfolio of information for your protection and has recently launched her Condo Radio.com    

The New Condo Act offers more Consumer Protection 

New Vs Resale Condominiums

The Importance of Status Certificates

Buyers must have a condition requesting a Status Condition on their Agreement of Purchase and Sale.  The Condominium Corporation has 10 days to provide the Status Certificate and relating documents to the Buyer.  The Buyer should have 2-3 days to have their Lawyer review these documents to his/her satisfaction.   If the Buyer's Lawyer is acceptable to these documents;  the Lawyer provides recommendation to the Buyer to release the Status Condition and finalize the sale.  Lawyers will generally not approve the Status, documents etc.  if the Condo Corporation has financial concerns on the building and/or unit.  The Buyer. would normally be advised not to purchase the unit.  

 

The Status Certificate package includes

  1. Condominium Documents
  2. Auditor approved Financial Report
  3. Reserve Fund information and accompanying confirmation
  4. Insurance Company Letter confirming up-to-date condo building insurance and particulars
  5. Cover letter from the Board outlining unit maintenance fees, arrears etc. relating to Unit
  6. Any additional information relating to the condominium building   ie Loans, Liens, Law Suits
  7. Is the Building Registered with the Condo Owners Association

Condo Reserve Funds and Operating Budgets

COA believes Condo Owners and all Home Owners should understand the operations of a Condominium and their financial structure, in particular operating budgets and reserve funds.

The financial package of the condominium buildings makes a huge impact on value therefore affecting the mortgage and real estate value.  There are key considerations to maintaining value in a condominium building aside from location and good management/maintenance.  The Reserve Fund is extremely important, see notes below:  

  1. High reserve funds creates good value within a condominium corporation
  2. Board of Directors should have studies to determine that the contributions for reserve fund are adequate to provide for the expected costs of major replacement  (per item 4 below)
  3. Board of Directors who follow study reports for major repair and replacement of the common elements and assets of the corporation (as mandated by the Condo Act 1998)  helps maintain value of the building and units
  4. Boards of Directors decisions must comply to all mandates of the Condo Act 1998  

Learn more about the  Condo Act


 

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