"pumpkin season" by émiliep on flickr
When you purchase a condominium in Ottawa we include in the offer a condition that allows you to research the condominium and read over its “status certificate” with your lawyer. This also gives you time to get in contact with members of the condo board and talk to them about the following questions. During the process you will learn how responsive and organized its members are. More importantly it will allow you to find out if there are any problems before it is too late.
1. What percentage of units is owner-occupied? What percentage is tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale.
2. What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place? You may find, for instance, that those who buy a property after a certain date can’t rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live within them.
3. How much does the association keep in reserve? Plus, find out how that money is being invested.
4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs.To determine if the assessment is reasonable, compare the rate to others in the area.
5. What does and doesn’t the assessment cover? Does the assessment include common-area maintenance, recreational facilities, trash collection, and snow removal?
6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board’s fiscal policy.
7. How much turnover occurs in the building? This will tell you if residents are generally happy with the building. According to research by the Canadian Real Estate Association®, owners of condos in two-to-four unit buildings stay for a median of five years, and owners of condos in a building with five or more units stay for a median of four years.
8. Is the condo building in litigation? This is never a good sign. If the builders or home owners are involved in a lawsuit, reserves can be depleted quickly.
9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions. Request an engineer’s report for developments that have been reconverted from other uses to determine what shape the building is in. If the roof, windows, and bricks aren’t in good repair, they become your problem once you buy.
10. Are multiple associations involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you’re buying, may require separate assessments.
I came across a list by NAR (National Association Of Realtors, basically our USA counterpart) and decided to Canadianize the list. You can check out the original list here.
If you would like to talk about buying a condo here in Ottawa, please contact Matt Richling directly 613-286-9501 or by email Matt@MattRichling.com.
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http://www.MattRichling.com
Exceptional loft style condominium in the heart of downtown. Seconds to work and play, not to mention the rooftop pool and terrace. Stainless steel appliances, granite countertops, 9ft ceilings, 21st floor views overlooking the entire city, plus over $15,000 worth of upgrades. Low condo fee’s make this a perfect place to live or as an investment. Imagine downtown living, the way it is supposed to be.
