What to discuss with your real estate lawyer when buying a condo

When purchasing real estate, the help of an experienced real estate lawyer can be invaluable. But if you are purchasing a condo, there are some notable differences compared to buying a single-family home. While some aspects, such as the Agreement of Purchase and Sale, will be more or less the same, there are other legal aspects that you will want to discuss with your real estate lawyer.

For example, while your condo unit will be yours exclusively, there will also typically be shared areas such as hallways, lobbies, standard rooms, elevators and so forth that you will own a share in. There may also be “exclusive use” common areas such as parking spaces or storage lockers.

Before making your purchase, you should discuss several items with your real estate lawyer. This article will cover some of those.

The status certificate

During the conditional period after signing the Agreement of Purchase and Sale, you may be entitled to a copy of the status certificate (and attachments). This document outlines the common areas’ expenses and the monthly payment that condo owners are required to make. It should also include whether there are any anticipated increases to this amount, along with financial statements, the status of the reserve fund, and other relevant financial information for the building.

In some cases, the monthly payment amount may be more than what is stated in your Agreement of Purchase and Sale. This typically happens if the period that the condo was on the market overlaps with the financial year-end of the condo building. If this is the case with your purchase, your real estate lawyer will advise you on how to proceed.

The reserve fund balance

Most condominiums have a reserve fund that is at least ten percent of their total operating expenses. This fund is in place to cover significant expenses to common elements such as repairs to the roof, elevators, plumbing etc.

If there is insufficient money in the reserve fund, condo owners may face “special assessments” to cover a significant expense. To protect condo owners from this, the Condominium Act requires regular reviews of the reserve fund.

Condominium regulations

Another critical discussion to have with your real estate lawyer is about the regulations of the condo you are buying. Your lawyer will review the rules and bylaws and ensure you understand them and any liabilities you might face. For example, you will want to know what is and what is not allowed in common areas or what happens if you or one of your guests breaks something.

You will also want to know how rules and regulations might affect your lifestyle. For example, there may be restrictions on running a business from your condo unit or limits to how many people you may have in the unit at once. There may also be limits on when and how much you may use certain amenities such as the exercise room.

It is important for you to understand any such rules and make sure they are rules that you can live with.

Verify the unit boundary

Additionally, your real estate lawyer will review the boundaries of the condo unit with you to ensure that the unit you are purchasing is the one on the Transfer/Deed that will be registered at closing.

Contact Levy Zavet today

If you are purchasing a condominium unit, it is important you work with a real estate lawyer who is experienced with condos. Call Levy Zavet today to speak to one of our lawyers.