Buying a home is one of the biggest investments for a person. That is why a person needs to consider a lot of things before finalizing a purchase. The type of property that one buys will depend on the person’s needs and lifestyle.
Condo units have become more popular over the years. They offer a lot of advantages. However, there are also various factors you need to understand.
What You Need to Know
To help you get started, here are 4 things you should know. You may even need the help of condominium lawyers in Edmonton.
- The nature of the property. A condominium is a form of real property that includes two parts: 1) your condominium unit that you own and have a title to; and 2) the common property which you jointly own with the other owners according to your unit share in the condominium corporation. All of the unit owners are responsible for the reponsibilities of the building including the costs of maintenance and repair and operating the building.
- There are various documents you should review prior to confirming your offer to purchase. There will be a number of documents to review including he bylaws,budget, meeting minutes recreational agreement, management agreement, reserve fund report, and condo plan. These documents will help you be well informed about the operation of the condominium. Including any rules you must follow, the financial position of the condominium corporation, and any building defects or maintenance issues that may be concerning. Your real estate agent will help you with this process. There are also service providers that will review the documents for you and bring any issues to your attention. Usually it will be a condition of your offer that you review these documents prior to committing to the purchase.
- You will have to pay recurring fees. Condo units come with regular fees. They are usually monthly. These fees are your corresponding contributions for the maintenance and operation of the shared property of the condo based on the budget prepared by the condominum board. There is also the potential for a special assessment. This is usually where there are not sufficient funds on the operating or reseve account to complete a repair or major project and all unit owners must contribute to the cost.
- You have to choose wisely when it comes to insurance. There are various types of insurance policies available to homeowners. However, the options may also be different if you choose to buy a condo. Research the types of policies suitable for your needs. You may be required by the condominium bylaws or government laws to have certain coverage. This way, you can be sure that your belongings and home are covered fully.
Purchasing a condo unit involves a different set of laws that may a first-time buyer may not have experiences Since these will have an impact on your life as an owner, you will have to make sure you have the proper knowledge to help make a wise decision. Seeking advice from a real estate lawyer may be the best thing to do.