Are you considering purchasing a condominium unit? The decision to buy a condo can be an exciting one, but it’s essential to proceed with caution. One of the most crucial steps in this process is collecting and thoroughly reviewing various documents related to the condominium. Whether you’re interested in a new development or a resale property, understanding the documents is vital for making an informed decision. In this blog, we’ll explore the essential documents you should consider when purchasing a condo and why they matter.
New Developments: What You Need to Review
When buying a new condominium, the developer is obligated to provide specific documents to ensure transparency and fairness in your condo purchase. Here’s what you should be looking for:
- Purchase Agreement: This is the foundational document for your condo purchase.
- Condominium Plan: This outlines the layout of the condo, including any additional plan sheets.
- Bylaws: These govern the rules and regulations of the condominium.
- Management Agreement: This details how the condominium will be managed.
- Recreational Agreement: If there are recreational facilities, this document specifies their use and management.
- Lease of Land: If the unit is on leased land, you’ll need this document.
- Mortgage: If there’s a mortgage affecting the title to your unit, it must be disclosed.
- Phased Development Disclosure Statement: This applies if the development is multi-staged.
- Home Warranty Insurance Contract: Understand the warranty terms.
- Occupancy Permit: This allows you to occupy your unit.
- Budget: Review the condominium’s budget to understand financial stability.
- Additional Information: Ensure you have all necessary information as required by the Condominium Property Regulation.
Resale Properties: What to Request
For resale or previously owned condominium units, sellers aren’t legally obligated to provide documents. However, the condominium corporation must provide certain documents upon your written request. These documents include:
- Financial Statements: These provide insights into the condo’s financial health, including income, expenses, and savings for future expenses.
- Meeting Minutes: These minutes reveal discussions and actions taken by the condo board.
- Insurance Certificate: Make sure the condo has adequate insurance coverage.
- Lease or Exclusive Use Agreements: Understand if any part of the common property is leased.
- Recreational Agreements: If the condo has recreational areas, know the rules regarding their use.
- Management Agreement: Review the property management contract for any unusual terms.
- Reserve Fund Study: This study predicts future expenses and repairs for the condo.
- Reserve Fund Plan: Learn how the board plans to address the findings of the reserve fund study.
- Reserve Fund Amount: Ensure there’s enough money saved for major expenses.
- Post-tensioned Cables Study: For concrete buildings, this study addresses cable maintenance.
- Structural Deficiencies Statement: Discover any structural issues with the building.
- Condominium Plan: Understand the layout of the building and the unit factors.
- Condominium Additional Plan Certificate: This provides additional information on the condo’s management and bylaws.
- Condo Fee Amount: Know the official condo fees and how they are calculated.
- Amount Owing: Ensure any outstanding amounts owed by the seller are accounted for.
- Actions Commenced Against The Condominium: Be aware if the condo corporation is involved in legal matters.
- Unsatisfied Judgment or Order: Understand any unresolved financial claims against the condo.
- Written Demand Over $5000: Learn about significant financial demands made against the condo corporation.
Each of these documents plays a vital role in your condo purchase decision, providing insight into the financial stability, management, and overall condition of the condominium. It’s crucial to review these documents carefully with the help of experts such as lawyers, real estate agents, and document reviewers to ensure that your condo purchase meets your expectations and avoids potential headaches.