Thinking about buying a condo? What should you know before you sign the purchase and sales agreement? Condo-Link Services can provide a document review of the property you are considering.
Condominiums are a form of shared ownership. When you purchase a condominium, you buy a specific unit and a proportional share of the common property (hallways, social room, fitness room, garage, parking lot, etc.). Certain common elements may also be designated as exclusive use, but not always. An exclusive use common element may include parking spots, balconies, or storage lockers. These common elements are for the sole use of a particular unit, yet the maintenance and repair of them is the responsibility of the condominium corporation.
In order to make an informed decision, a document review can provide the details of the financial and legal health of the condominium corporation. Document reviews include an examination of the Declaration, By-Laws, Common Element Rules, Financials, Reserve Fund Study, Reserve Fund Contributions, Special Assessments (current & planned), Condominium Fee Schedule, Operating Budget, Corporation Insurance Policy, Minutes for the General Meetings, and Management Contract (if applicable). A review of these documents can determine:
- any potential risks, financially or legally
- whether or not a Reserve Fund Study been completed or updated, as required by the Act
- whether or not the Reserve Fund has been sufficiently funded
- what rules govern the property (can I have a pet?, where do I park?)
- how condominium fees are collected
- what municipal taxes the unit owner is responsible for
- who pays for repairs and maintenance (in your unit, in the common areas)
- who manages the condominium corporation
- who owns and lives in the building – is it primarily owner-occupied or rented
Condo-Link can prepare a comprehensive review of the condominium corporation and provide a written report. In addition, the service includes a meeting with you to discuss and answer any questions that arise from the review, if requested.
For more information, contact Condo-Link at 506-455-9207 or firstname.lastname@example.org
NB Condominium Property Act, Chapter C-16.05 http://laws.gnb.ca/en/showfulldoc/cs/C-16.05/
NB Regulations http://laws.gnb.ca/en/ShowTdm/cr/2009-169//